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Tax holiday: Brakes on Volkswagen project in Sri Lanka
View(s):The much heralded multi-million dollar investment by the troubled German car manufacturer Volkswagen has run into further problems with the Finance Ministry refusing a tax holiday to the local collaborator.
The Ministry has said tax concessions cannot be extended to Senok Automobiles, which has entered into an agreement with the Board of Investment (BOI) as it was after April 26, 2016, the cut-off date for tax holidays. Only those projects which had won approval before that date were being offered tax holidays.
Senok Automobiles proposed to assemble Volkswagen cars and has been given land in Kuliyapitiya for this purpose.
The Sri Lankan company had entered into an agreement with Deutsche Autombiles (Pvt.) Ltd for the manufacture of Special Purpose Vehicles (SPVs).