17 June 2023 04:30 am Views - 278
|
CMTA Chairman Charaka Perera |
The Ceylon Motor Traders Association (CMTA) has come up with a proposal to resume vehicle imports, with a focus on benefiting the economy, meeting mobility needs of masses and ensuring government revenue.
The CMTA said it has submitted the comprehensive proposal to the relevant authorities.
The proposal is divided into two key parts. The first part emphasises a gradual and staggered approach to lifting the suspension on vehicle imports. The initial phase would involve the reinstatement of two-wheelers and three-wheelers, followed by commercial vehicles and finally passenger vehicles.
The second part of the scheme proposes imports to be subject to an increased tax regime of an additional 130 percent, with quarterly reductions in the additional tax.
“This systematic approach aims to bring the tax structure back to its current level within a two-year period, with a 15 percent reduction each quarter. Such a scheme will severely discourage excessive vehicle imports once the ban is lifted,” a CMTA statement said.
However, Finance State Minister Ranjith Siyambalapitiya yesterday said there is no possibility to lift the ban on vehicle imports at this moment, given the volatile situation of the country’s foreign exchange front.
To prove his point, Siyambalapitiya pointed to the recent depreciation of the rupee against the US dollar, as a result of the Central Bank releasing US $ 80 million to Ceylon Petroleum Corporation.
One of the critical aspects highlighted by the CMTA in its statement is the need for regulated and sustainable import practices that safeguard the country’s foreign exchange reserves.
“The association firmly opposes the importation of old vehicles, as it will have a negative impact on the environment, fuel consumption and also significantly increase the need for importation of spares, leading to further outflow of forex,” the CMTA said.
Recent media reports indicate that certain groups have been lobbying the government to change the current rules on used car imports from a maximum age limit of two years to allow the import of vehicles that are up to seven years old.
The CMTA said it discourages the importation of vehicles on supplier credit, as it has the potential to facilitate practices of sending out funds through illegal means to suppliers.
Founded in 1919, the CMTA is the only Ceylon Chamber of Commerce-affiliated trade body that represents vehicle manufacturers through their locally appointed franchise holders, commonly called ‘agents’.