Vehicle tax concession for public sector:
Industry lauds Govt move
The Government tax concession on imported and locally manufactured
vehicles for public servants will be a good move to reduce environmental
pollution and the maintenance cost of a vehicle by promoting the import
of brand new vehicles to the country.
This step taken by the Government will further increase the present
demand, Colonial Motors, Managing Director, Mohan Ratnayake told Daily
"The present demand for vehicles has exceeded supply after the
Government reduced import tax a few months back and thus we are
currently waiting for a shipment from the suppliers," he said.
The Government has decided to allow tax concessions for public
servants who are in the executive and managerial levels while
considering officers in the military service as well. According to the
tax concessions, officers are allowed to purchase vehicles ranging from
1000CC to 2600CC and can purchase a vehicle that costs US $ 25,000 or
Tax concessions or brand new and locally manufactured vehicles will
make a car affordable for public servants and professionals of the
country, Micro Cars Limited, Chairman and CEO, Dr Lawrence Perera said.
He said that purchasing a new vehicle not only positively affects the
environment but it will also create a pleasant condition for public
servants to work more effectively since they do not have to depend on
the public transportation.
"This decision on the other hand, will improve Sri Lanka's only car
manufacturer, Micro and we will be able to increase the volume
manufactured. It will also give us the ability to provide more
employment opportunities in line with the rising demand. Along with the
motor vehicle industry, the local component industry will also develop
through this measure," Perera said.
The motor vehicle industry had a boost with the previous tax
concessions. With the tax concessions for Government servants, there
will be a good demand for lower end motor vehicles, Stafford Motors,
Managing Director, Kalinga Kaluperuma said.
The tax concession on vehicles for eligible public sector officials
is a welcome move and the Government at the same time should extend this
concession to the private sector Senior Executives, Ceylon Motor Traders
Association, Chairman, Tilak Gunasekera told Daily News Business.
Private sector Senior Executives pay taxes and they drive the economy
forward thus they should be considered for the concession.
"The vehicle sales will grow according to the number of permits the
Government decides on giving for the public servants," he said.