Luxury Tax Increase
Dr. De Silva highlighted that the luxury tax on approved imported vehicles has been increased to a range of 6–12 million rupees. Given the substantial increase, the Committee has handed the matter over to the Ministry of Finance for review.
Challenges in Electric Vehicle Importation
The Chairman noted significant issues with remittances for individuals working abroad seeking to import electric vehicles. Concerns included under-invoicing, proper tax compliance, and the apparent concentration of the market, with 68% of these imports being handled by only two agencies. The lack of an online system to streamline and monitor the process exacerbated the situation, raising transparency and fairness concerns.
Vehicles for the Tourism Industry
To support the tourism industry, a special gazette was issued to allow the importation of specific vehicles despite the ongoing ban on general vehicle imports. Approved imports include 250 mini coaches and buses and 750 vans, all limited to brand-new vehicles. The committee has approved a structured system for this initiative to address the industry's transportation needs effectively.
Investigations and Joint Committee Report
A joint committee was formed to address these issues, comprising representatives from the Ministry of Finance, Ministry of Labor, Central Bank, Immigration, and Customs. The report submitted by the committee highlighted several shortcomings in the existing system.
Based on the findings, stricter investigations have been ordered to address issues such as transparency, tax compliance, and the potential monopolization of the import process. The Ministry of Finance has been tasked with reviewing these concerns and ensuring a fair and efficient framework moving forward.
Conclusion
The increased luxury tax and issues surrounding the importation of vehicles, particularly electric ones, have revealed significant gaps in policy implementation and regulatory oversight. The parliamentary discussion underscores the need for systemic reforms, enhanced transparency, and accountability to ensure that the import process aligns with national economic and environmental goals. By addressing these challenges, Sri Lanka can promote fair trade practices while meeting the needs of sectors like tourism and electric mobility.
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