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Tax Increase on Imported vehicles is a factor to adjust Balance of Payments Deficit

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It’s a Clear statement made by the Central Bank Governor of Srilanka that any country can’t continue the Balance of payment continuously without any reduction or control. If the Balance of Payment Deficit increases continuously without any proper action, it will lead a bigger risk to economy.

The increase of the Import taxes will reduce on the luxuries vehicle imports and reduce the cash outflows; it’s a good step to reduce foreign payment cash outflows.

Positive (Benefits) points of Tax Increase on Imported vehicles

  • Reduce the foreign cash outflows
  • Improve the local manufacturing and help to develop infant businesses in srilanka
  • Reduce Traffics and increase usage of Public transport- which lead to higher quality service expectation of public transport
  • Support Green Environment with lesser number of vehicles

Negative (Disadvantage) points of Tax Increase on imported vehicles

  • Increase of cost of Living (Indirect cost to Public)
  • Lesser Developments
  • Over burden to Importers and final Vehicle consumers
  • May lead to negative or opposition to government policy

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Prasanna

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3 responses to “Tax Increase on Imported vehicles is a factor to adjust Balance of Payments Deficit”

  1. lakhup Avatar
    lakhup

    Dear MP Lakshaman Kiriella;
    Now we can realize the truth of your statement “Ona Gonakuta Gini Poliyata Nayata Salli Aran Yudda Karanna Puluwan”. Exactly correct our bull can do war only. He can’t manage the country.

    Reply
  2. lakshaman Avatar
    lakshaman

    A small vehicle is necessary thing for a person to travel during rainy season, and when suffering from ill, as well as during the time periods where public transport not available, and the people who live very far from main roads and cities and long distances and to travel with babies with its accessories, caretakers, etc.
    If government want to control the amount of vehicle imports, no need to increase the tax. They can do followings.
    (1). Impose a rule that one person can have only one vehicle for private use among Car, Van, SUV, Jeep, Pickup categories other than motor bike or lorry or bus or machinery for agriculture, construction, etc. Then the owners of more than one vehicle among Car, Van, SUV, Jeep, Pickup categories have to sell the old ones to buy a new one. Then scraps will not get collected within the country.
    (2). A person definitely should have a valid driving license before get register a vehicle for his name.
    (3). Cancel all the permits given to politicians and other government officials so that they also can feel how much difficult to save 1million or 3 million and the time required to earn that much money to pay as taxes.
    Without planning policies properly the government simply increase the taxes in huge amount. Can a government impose 1 million – 3 million tax increase suddenly without prior notice. Actually this is a THEFT and HUMAN RIGHTS VIOLATION.
    Can a courageous and talented person or organization please file a human rights petition to the court or International human rights commission.

    Reply
  3. Prasanna Avatar
    Prasanna

    Dear Mr.Lakshaman,
    What you said is Noted, but this is Republic Country, therefore No One can made an requlations like that which violating Human Rights,
    Hope you understood,
    Best regards,
    Prasanna.A

    Reply

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