New taxes causing hardship – importers of Hybrid vehicles lament

New taxes causing hardship – importers of Hybrid vehicles lament

Written by Bella Dalima

04 Feb, 2015 | 8:51 pm

A number of individuals who ordered hybrid vehicles are faced with hardships as a result of the new taxes introduced by the government through the interim budget.

They request the government to provide concessions for vehicles where letters of credit were opened before the interim budget was produced.

The Minister of Finance meanwhile says that though tax concessions for vehicles ordered for personal use could be given consideration, the tax rates on vehicle imports done for business purposes will not be revised.

Through the tax proposals in the interim budget that was presented in parliament, the prices of Hyrbid vehicles have increased by between Rs.700,000 and Rs.1.2 million.

Speaking at a media briefing convened Tuesday, a group of consumers who have already opened letters of credit to import hybrid vehicles, noted that they are now facing a serious crisis.

Meanwhile, another group of stakeholders in the vehicle importation business, convened a media briefing in Maharagama on Wednesday.

Corporate Executive, Uthula Saranga Ranaweera said that the people here are those who selected a vehicle they could afford from Japan, opened LCs themselves and ordered the vehicles. After the 29th, they cannot reverse LCs that have been opened or close it because it is non-negotiable.

Minister of Finance, Ravi Karunanayake said:

Before, introducing our tax policy, we obtain some views, In truth, I am not aware of the legal backdrop in this matter, so I will consult our lawyers and in cabinet, and if these have been brought down at personal cost, be it 50 or 100 vehicles, we are bound to assist them. But as the Finance Minister, I wish to state clearly, that we will not consider it, if it is a business matter.

Nevertheless, the Lanka Vehicle Importers’ Association says that they too are facing a crisis as a result of the new tax.

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