ECONOMYNEXT – Sri Lanka will release around 700 vehicles which have been seized by Customs after applicable taxes are paid, Finance Minister Basil Rajapaksa said.
“They have been stuck over several years,” Rajapaksa told parliament. “Some of them are rotting away (dirapath wenawa).
“There are about 700 such vehicles.”
Rajapaksa said the Sri Lanka Customs had seized them for non-payment taxes as well as other reasons.
Sri Lanka has banned vehicle imports after printing money and second hand car prices have soared amid low interest rates.
The vehicle import ban has deprived revenues as cars are taxed at rates close to 300 percent.
However other non-controlled imports have soared as credit flowed to other sectors including construction showing the futility of import controls and the grip of Mercantilist beliefs in the country.
Minister Rajapaksa said the government will also tax accident vehicles which can push up insurance premia and also hit insurers who have charged the old premium. (Colombo/Nov13/2021)