Sri Lanka vehicle importers urge tax relief amid post-disaster sales decline

The President of the Vehicle Importers’ Association of Sri Lanka (VIASL), Prasad Manage, stated that the government should prioritize reducing the prices of small vehicles commonly used by the general public.

He specifically called on the government to revise the pricing and tax structure applicable to low engine-capacity vehicles in order to improve affordability.

Commenting on the current tax regime, Manage said that the association is seeking tax reductions for vehicles in the 1,000cc category, including models such as the Alto, Wagon R, Yaris, and Hustler, which are typically purchased by middle-income consumers. 

He noted that a Wagon R currently attracts taxes amounting to around Rs. 4 million, despite being a small and fuel-efficient vehicle.

“These are vehicles primarily purchased by middle-class citizens. Such vehicles should be encouraged and made more accessible to the general public,” he said.

Manage further observed that the recent disaster situation in the country has resulted in a sharp decline in vehicle sales. 

Citing the broader economic impact, he urged the government to ease certain conditions imposed on imported vehicles.

He explained that the economic difficulties faced by the public have left many customers who placed orders unable to complete their purchases. 

‘Under current regulations, a penalty of 3 percent is imposed if the three-month period for vehicle clearance is exceeded,” he said.

In this context, Manage appealed to the government to take the prevailing disaster situation into consideration and, if possible, waive the 3 percent penalty.