Adverse impacts of multiple challenges dampen DMT revenue collection

Tuesday, 6 September 2022 03:11 - - {{hitsCtrl.values.hits}}

Monthly contribution to Govt. coffer drops from Rs. 1 b to Rs. 700 m
Outlines closure of DMT during pandemic, import restrictions on vehicles, high interest rates on transfer of vehicle ownership as key reasons for revenue drop
DMT runs out of imported cards to issue licenses

The motor vehicle regulator has suffered a setback in its revenue collections following the adverse impacts of the COVID pandemic and the ongoing economic crisis.

As a top agency that generates revenue for the Government, the Department of Motor Traffic’s monthly contribution to the Treasury has dropped from around Rs. 1 billion to Rs. 700 million at present given the multiple challenges.

“Following the adverse impacts of the pandemic and the ongoing economic crisis, the Department’s average daily income has dropped to around Rs. 35 million to Rs. 40 million,” Department of Motor Traffic Accountant Aravinda Samarakoon told journalists yesterday.

Closure of the department at the early stages of the COVID outbreak, import restrictions on motor vehicles, and high interest rates imposed on the transfer of vehicle ownership were outlined as key reasons for the revenue drop.

As per the Department, the total number of new vehicles registered up to May was 10,159, and of that 3,358 were motorcycles, whilst 2,694 were LV tractors and 1,653 LV trailers.

However, he said that the income generation of the Department has slowly picked up, as it had adopted digital payment systems and technology to boost efficiency.

Department of Motor Traffic Commissioner (Control) Susantha Jayathilaka also said they are short of driving license cards.

“The import restrictions impacted the issuance of new license cards and renewals as these cards are imported. However, to avoid any inconvenience to the motorists, at present we issue a document till the cards are sorted,” he explained.

Jayathilake also said the Department continues to operate a self-financing institution that manages the salaries and wages and maintenances of systems.