Sri Lanka's vehicle imports slow down

Sri Lanka's vehicle registrations have slowed down in the past eight months due to high taxes imposed on vehicle imports, said Commissioner General of Motor Traffic S. H. Harischandra.

In the first eight months of 2012 registration of brand new and reconditioned cars declined 34.6 per cent to 25,489 units from 38,974 compared to the same period last year, he said.

Earlier in the year the Finance Ministry imposed new taxes of as much as 100 per cent of import value on some imported cars and raised taxes on hybrid cars at a lower rate with a view to ease congestion on roads and reduce the fuel import bill amidst a balance of payment crisis

Vehicle imports are expected to come down further, due to the government's action to raise car duties after a heavy drain of foreign exchange to import cars, Mr. Harischandra said. He added that the revenue on car duties is expected to increase although there is a drop in automobile imports.

According to data from the Department of Motor Traffic, registrations of three wheelers have also dropped by 29.7 per cent to 62,481 in the first eight months of 2012, compared to 88,828 in the same period last year. Motor cycle registrations fell by 13.5 per cent to 142,509 in the first eight months of this year from 164,833 compared in same period last year, Mr. Harischandra said.

Vehicle imports are expected to come down further, due to the government's action to raise car duties after a heavy drain of foreign exchange to import cars, Mr. Harischandra said. He added that the revenue on car duties is expected to increase although there is a drop in automobile imports.