SL vehicle importers eye next budget

The Vehicle Importers Association has reiterated to the government the need to assist the industry to come out of its current crisis, having submitted its concerns hoping it would be addressed in the next budget.

Used vehicles importers are allowed to bring down only 2- year old cars, but the industry wants this extended to three years, its President Mahinda Sarathchandra said at a media briefing held on Monday.

This comes in the wake of the association's break-away group the previous week stating it was ready to commence work overseas due to the dwindling state of the local used vehicle imports industry. Mr. Sarathchandra noted that they were in agreement to provide the required after sales service, the warranty and believes the government should implement the new proposed plan as outlined by the President earlier this year.

The vehicle importers claimed that even 3-year old Japanese vehicles were better environ- mentally as opposed to Asian vehicles entering the local market. The industry is now hoping the government would provide them with an opportunity to continue their business at a low cost through the next budget. Lately, the Sri Lankan market has been flooded with vehicles since taxes were drastically reduced in 2010 that became a cause for concern to authorities. This year the government imposed high taxes on vehicle imports almost immediately without giving time for the industry to take stock of the situation. But the industry claims that its sustainability is crucial for the provision of a low cost but high quality vehicle for middle income persons.

In March this year the President proposed the provision of a trade license, which was agreed by the industry. However, no work has commenced in this area. Others in the association query why this matter was not pursued by authorities for quick implementation that is likely to sustain this industry.