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By Ravi Ladduwahetty

Sri Lanka's import/ exports will suffer a serious blow with the Association of Container Transporters contemplating strike action in the event of the Ministries of Finance and Transport not acceding to a request from the Association to exempt it from the Road Tax which was declared in the 2003 Budget.

"We have written to the Ministries of Finance and Transport and there is no response. We are in the process of submitting a petition to the two Ministers. This is a serious situation as the new Road tax for ACT members will add a further Rs. 4,000 to the existing Rs. 12,000 which is levied for the container trucks which is the highest for all categories," ACT President Sunil Fernando told the Daily News yesterday.

He said: "It is also sad to note that every serving government has not taken into consideration the silent contribution made to the economy of the country by Container Transporters. Without this industry the entire Import and Export trade will come to a grinding halt."

"We kindly appeal to you to consider the Prime mover and the Trailer as one unit for all-purposes as done in developing countries and also the trailer to be removed from road tax as well as revenue licence. This would also avoid practical difficulties faced by the Industry at present," he said.

The following is the letter from the ACT President to Finance Minister, K.N. Choksy.

"As per the recent budget proposals the vehicle users are being called upon to pay an additional tax on top of the revenue licence fee for road development with effect from January 1, 2003. On behalf of the Container Transport Industry we wish to place the following facts for your kind consideration."

The Prime Mover and the Trailer are registered by the Registrar of Motor Vehicles as two separate vehicles. However, we have requested repeatedly in every forum in your Ministry during the last 10-years to treat same as one unit as without the prime mover the trailer cannot move on its own. The system of using the Prime Mover and the Trailer as one unit is practised in all developed countries, which manufacture the subject equipment.

The revenue Licence fee is in the region of Rs. 12,000 per annum paid by the Container Transporters, which is the highest in Licensing Tariff of the RMV. The licensing fee of Container Transporters will increase by 33% with the new road fund.

It is also sad to state that every serving government has not taken into consideration the silent contribution made to the economy of the country by Container Transporters. Without this industry the entire Import and Export trade will come to a grinding halt.

Taking the above facts into consideration we kindly appeal to you to consider the Prime mover and the Trailer as one unit for all-purposes as done in the developing countries and also the trailer to be removed from road tax as well as revenue licence. This would also avoid practical difficulties faced by the Industry at present.

While we totally agree roads should be developed to suit the modern day requirements it is a known fact that the taxpayers of this country are being compelled to pay for inbuilt inefficiency and corruption of government institutions. If efficiency could be brought into these institutions most of these new taxes will not be necessary.

"We kindly request you for an early appointment to discuss this issue prior to implementation of the Road Tax as this may lead to a major trade dispute."

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