Hybrid vehicle import tax based on engine displacement will cut costs and keep everyone happy – Breaking News

Colombo, December 20 (Daily Mirror) – If imports of hybrid vehicles are taxed based on their engine displacement, it will satisfy both consumers and the government, while reducing the prices of existing vehicles in the country, a said the President of the Sri Lanka Business Council of Japan. » said Jagath Ramanayake.

Speaking to the media, he said that there is a growing global trend towards the use of hybrid vehicles. The foreign exchange required to import hybrid vehicles is significantly lower than that of gasoline or diesel vehicles.

Ramanayake proposed that the government import used or new vehicles while imposing taxes based on engine displacement, thereby ensuring a constant source of revenue for the government.

“Taxing hybrid vehicle imports based on engine capacity will benefit both consumers and the government. This approach will also reduce the prices of existing vehicles in the country. If implemented, it will lead to the entry of better quality used or new vehicles into the market. , increase labor force participation and reduce fuel costs,” he said.

He also welcomed the decision to allow the importation of motor vehicles for personal use from February 1, 2025, after a five-year suspension.

“As vehicle importers from Japan, we have discussed this issue with Sri Lankan vehicle importers and conveyed to the government that the time has come to resume vehicle imports.

“After the COVID-19 pandemic, countries in Africa and Asia resumed vehicle imports within two to three years. Some countries have reduced taxes to encourage imports, while others have even imposed zero percent import taxes to meet demand for vehicles essential to economic growth. he said.

Ramanayake urged the Sri Lankan government to extend the permitted manufacturing period of imported vehicles from three to seven years, citing the high quality of these vehicles. He stressed that the importation of such vehicles would reduce costs by more than 50 percent while minimizing environmental damage due to their use in controlled and eco-friendly environments.

He added that vehicles exported to countries such as Australia, New Zealand and England are often almost seven years old from the date of manufacture. Despite their age, the quality of these vehicles remains high.