Chairman of the Sri Lanka Vehicle Importers Association, Prasad Manage, says that vehicle prices in Sri Lanka are likely to increase in the future.
He stated that the depreciation of the Sri Lankan rupee against the US dollar is one of the main reasons for the expected price hike.
Prasad Manage also emphasized that the increase in the social security contribution levy to 2.5 percent from May will further contribute to rising vehicle prices.
“The government expects significant revenue from vehicle imports. According to my calculations, it is expected to be around Rs. 700 billion this time. We are among the sectors that generate the highest revenue for the government, especially through used vehicle imports.
The government expects revenue of 1.5 dollars for every dollar. However, we pay taxes of up to 2 to 2.5 dollars on the vehicles we import. Due to tax-related issues in the import of certain electric vehicles, the revenue earned per dollar is even lower.
We have requested the government to review these matters. Since the government is earning more revenue from used vehicles than expected, it appears to be in a winning position.
From May, the social security contribution rate has increased by 2.5 percent. Along with the rising foreign exchange rates, we expect to see an increase in vehicle prices in the future,” he said.
