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Tuesday, February 15, 2011 - 5.25 GMT

Vehicles imports up with tax-cuts

 

The registration of new motor vehicles has gone up sharply in 2010 compared to 2009.

Car imports into Sri Lanka shot up by 300 percent to 23,072 in 2010 after the government slashed import duty and also because of rising demand after the end of a war.

It said the number of cars registered with the motor traffic department in 2009 had only been 5,762.

A total of 359,243 vehicles of different types were registered with the department in 2010 which is an increase by 155,168 or 76 percent from 204,075 in 2009, a statement quoting motor traffic department statistics said.

Over two million motor cycles were registered with the department in 2010 as the economy revived with the restoration of peace in 2009.

The statement attributed the higher vehicle imports to the 50 percent reduction in import duty last year and improved availability of bank loans and leasing facilities along with higher demand for vehicles in the former war zones of the north and east.

Government incentives to encourage small and medium enterprises also led to increased demand for motor cycles and three-wheeled auto-rickshaws.

Revenue from import duties have also risen sharply after imports shot up with the reduction in rates.

Around 30,000 vehicles are registered by the department each month, the department sources say.

The slash of import taxes on motor vehicles by the government last year caused a massive influx of vehicles.

Sri Lanka in June 2010 reduced vehicle import taxes by 50 percent and removed the 15% import surcharge levied on all imports.

 


 

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Last modified: February 15, 2011.

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