Deputy Minister of Finance and Planning Dr. Anil Jayantha has clarified that recent claims regarding a tax hike on vehicle imports are largely misleading tactics used by sellers to create public fear.
Speaking to the media today, he explained that rather than introducing a brand-new tax, the government has simply shifted the point of collection for the Social Security Contribution Levy (SSCL) from the point of sale to the initial customs stage.
“So, fear is being created in society by claiming that prices will increase; such claims can also be used as a selling tactic. I believe the public should not be deceived. Stay informed by facts and do not follow baseless statements made by various individuals. This is not an additional tax imposed in any way,” he said.
“Previously, we did not collect SSCL at the point of import, but rather at the point of sale. Suppose a vehicle is imported for 100 million rupees. After adding value, it is sold for 200 million rupees. If it is sold for 200 million, the seller was supposed to add 2.5% to that amount and pay the tax to the government. However, many such payments were not made. Due to the irregularities and issues that existed, we have adopted a new strategy: instead of charging that 2.5% at the point of sale, we now collect it at customs at the point of import,” he said.
Elaborating further, the Deputy Minister stated that due to the shift in the SSCL collection point, vehicle prices should actually decrease.
“Those who oppose this change are the ones who had not been paying the tax. If they had paid the tax they are now opposing, they would have had to pay it on the 200 million rupees — on the added value. Now, we have removed the requirement to pay SSCL at the point of sale. Since SSCL is now paid at the point of import, it applies to 100 million rupees. In that case, the price of the vehicle should actually decrease,” he said. (NewsWire)