A decision on whether to discontinue the customs surcharge on vehicle imports after December 31 will depend on Sri Lanka’s foreign exchange situation, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe said.
Speaking during a televised political discussion in response to a question on vehicle prices and import taxes, Abeysinghe said the government’s priority was to strengthen the country’s foreign exchange reserves before easing such measures.
He said vehicle imports had resumed after being restricted as part of efforts to protect foreign exchange reserves. The government had initially expected vehicle imports worth about $1.8 billion, but imports had reached about $2.1 billion this year when taxes and additional charges were taken into account.
Abeysinghe said the rise in vehicle imports had also increased fuel demand, creating a need for temporary measures to slow the pace of imports. He said the customs surcharge was introduced as part of that response.
He said it was not possible to confirm whether the surcharge would be removed after December 31, as the decision would depend on the country’s foreign exchange situation at the time.
Abeysinghe also said the government expected indirect, direct and import taxes to be gradually reduced as the tax base expanded and tax collection improved.
Asked whether vehicle import permits could be reintroduced, he said the government could consider such a move in the future once foreign exchange reserves and state revenue had become more stable.
He said the government’s long-term policy was to reduce the tax burden on individuals and make vehicle purchases more affordable, while stressing that any changes would be introduced gradually. (Newswire)