The government has proposed new regulations on vehicle importers, related to the Cost, Insurance, and Freight (CIF) value of a vehicle, when lifting import restrictions, it was reported.
According to The Sunday Times, a senior Treasury official said the new regulation has been proposed to prevent vehicle dealers from importing vehicles in bulk and hoarding them at sales outlets, which could result in another Dollar crisis.
As per the undertakings with the IMF to lift vehicle import restrictions by the end of this year, the government intends to remove the import restrictions in stages for different categories.
New regulations on vehicle importers;
A tax equivalent of 3 per cent of a newly imported vehicle’s CIF value will be levied from the vehicle importers if they fail to register the vehicle within 90 days of importation.
The senior Treasury official said it is mandatory for all imported vehicles to be registered within 90 days of importation.
He further said that the government will not allow vehicles to be sold with garage number plates.
Proposed timeline for lifting import restrictions;
As a first step, with the agreement of the Central Bank of Sri Lanka (CBSL), a Cabinet Paper is to be submitted to remove import restrictions on tourist coaches and other passenger transport vehicles starting next month.
The senior Treasury official said after Cabinet approval, a gazette will be issued announcing the removal of the restrictions.
In November, again with the approval of the CBSL, another Cabinet paper would be submitted to remove import restrictions on industrial vehicles such as lorries, tipper trucks, and backhoes.
In January next year again, a Cabinet paper will be submitted to remove import restrictions on personal usage vehicles such as cars, vans, and jeeps starting in February.
Lifting of import restrictions for other vehicles;
The Treasury has recommended lifting import restrictions for motorcycles. However, no decision has been made yet on when these restrictions will be lifted.
The senior Treasury official revealed that the government has no plans to lift import restrictions on three-wheelers.
According to him, owing to environmental concerns, the government would only allow the import of electric three-wheelers. (Newswire)