Wednesday Dec 18, 2024
Wednesday Dec 18, 2024
Thursday, 7 March 2019 02:04 - - {{hitsCtrl.values.hits}}
The Ceylon Motor Traders Association (CMTA) yesterday in a statement expressed mixed sentiments over the 2019 Budget admitting it understands the Government’s predicament but suggested a way forward for a win-win arrangement.
“CMTA understands the Government’s requirement to implement policies that will deter the import of motor vehicles, given the challenges Sri Lanka faces in terms of Balance of Payments and also the congestion in urban areas. The CMTA also understands the Government’s requirement to bring in a luxury tax on vehicles,” the statement said.
However, the CMTA said they were concerned that if taxation is levied based on invoice prices, duty revenue will be lost due to under-declaration of invoice values by non-manufacturer authorised used car importers.
“Thus, the association has made representation to the Government that they will assist the Government to fix values for every make and model of vehicles imported for the purpose of administering the luxury tax, so any importer of such a vehicle will pay the same luxury tax, and so the tax levy cannot be manipulated.”
The CMTA has also requested the Government to permit vehicles ordered and with already established LC’s to be imported on the basis of the duty structure prior to Tuesday’s Budget.
The association has recommended the Government legislate the definition of a ‘Brand New Vehicle’ as one that is exported by the vehicle manufacturer, directly to an importer that is under agreement to the manufacturer. This definition allows the differentiation of vehicles imported through the manufacturer that are covered by manufacturer’s warranty from other imports through non-legitimate channels.
The second recommendation is to register all vehicle importers, by having them hand over their company registration certificate, confirmation from the Registrar of Companies that they have filed their annual returns, confirmation from the Inland Revenue Department that they have no taxes in default and finally confirmation from the Labour Department that their statutory dues are paid. This ensures all vehicle importers are compliant with the laws of the land and thus ensures a level playing field.
The CMTA said it represents the interests of the world’s leading automotive manufacturers that are present in the Sri Lankan market. The Association is in its 99th year and one of the oldest industry associations in Asia, and affiliated to the Ceylon Chamber of Commerce.
