Increased Duty-free allowances, EV permits offered to boost worker remittances via official channels

3 August 2022 01:32 am Views - 271

• Everyone returning to the country will continue to enjoy duty free concessions irrespective of the funds remitted

• Migrant workers would be grouped into categories based on their annual remittance inflows, with 20 percent increase in duty free allowance

 

As a part of the incentive package to boost worker remittance inflows, the government has decided to introduce a special duty-free allowance structure along with another scheme granting electric vehicle (EV) import licenses to migrant workers based on their remittance inflows into the country through official channels.

Based on the recommendations of the Cabinet-appointed officers committee, the Minister of Labour and Foreign Employment Manusha Nanayakkara on Monday sought the approval of the Cabinet of Ministers to provide additional duty concession allowances to Sri Lanka’s migrant workers based on the amount remitted through official channels when they return to the country. 
In addition, migrant workers who remit funds to Sri Lanka through official channels will also be qualified to import EVs.

 

Meanwhile, the Minister noted that irrespective of the funds remitted by the migrant workers, everyone returning to the country will continue to enjoy duty free concessions at the duty-free lounges at the country’s international airports.

According to the existing mechanism, anyone returning to the country under 90 days, 365 days and over 365 days is granted duty concession allowances up to US$ 187.50, US$ 625 and US$ 1650, respectively. 
While retaining the current duty-free allowances, he noted that migrant workers who remit a minimum of US$ 2, 400 per annum via official channels will be qualified for the additional benefits.  Based on their annual remittance inflows, migrant workers would be grouped into categories through the information gathered from the banking system with 20 percent increase in duty free allowance.

Accordingly, migrant workers who have remitted a minimum of US$ 2, 400 of their earnings get a duty-free allowance of US$ 2, 350 under Silver category. For   those who have remitted US$ 4, 800 will be eligible for duty free allowance up to US$ 2, 710.

Under the Gold and Gold Plus categories, migrant workers who have remitted over US$ 7, 200 and US$ 12,000 will be eligible for up to US$ 3, 190 and US$ 4, 150 duty free allowances. Lastly, migrant workers who have remitted US$ 24,000 per annum will be eligible for up to US$ 6, 550 duty free allowances.

Meanwhile, migrant workers who remit over US$ 3,000 and less than US$ 20,000 per annum will be offered an opportunity to import electric two-wheelers equivalent to 50 percent of remittance transmitted through legal channels.  Migrant workers who remit over US$ 20,000 within a year are eligible to import an electric car within 300-500cc category for the value of the remitted amount up to a maximum of US$ 65,000. 
However, Nanayakkara stressed that such electric vehicles will have to depend on off-grid electricity sources through their own solar panels for charging.

The circulars on the special duty allowance system along with granting of vehicle licenses are to be issued within the next week. The government expects the two proposals to contribute to a significant increase in remittance inflows through official channels while swaying migrant workers away from unofficial cross-border fund transfer systems such as Hawala and Undiyal.