The Inland Revenue Staff Officers’ Association has suggested to the government that more tax concessions should be granted for vehicles with engine capacities below 1500cc to help reduce the outflow of foreign exchange for vehicle imports.
Speaking at a media briefing held today (08), the Association’s Secretary, J.T. Chandana, said importing vehicles with higher engine capacities results in a significant drain on the country’s foreign reserves.
He explained that if tax concessions are provided for vehicles under 1500cc, both individuals and businesses would be encouraged to import such vehicles, thereby minimizing the outflow of foreign exchange.
“We know that a large number of vehicles have been imported into the country, especially high engine capacity vehicles. These vehicles cost a large amount of foreign exchange. As a trade union, we propose that if vehicles with an engine capacity below 1500cc are allowed to be imported with more tax concessions, people will import such vehicles. This will reduce the foreign exchange outflow significantly. For example, the foreign exchange used to import one high-capacity vehicle can instead be used to import 20 to 25 vehicles with engine capacities below 1500cc,” Mr. Chandana said.
