Car renting trade calls for relief

Saturday, 6 February 2016 03:34 - - {{hitsCtrl.values.hits}}

A member of the Rent a Car Association (RACA) on Wednesday asked the Government to let banks and financial institutions offer 100% LTV financing for Value Added Tax (VAT) registered business/entities to broaden the tax net.

Kings Rent A Car Ltd. Managing Director Kishan Perera told the Ease of Doing Business Forum that the imposition of 70% LTV had a negative impact on the industry, hindering growth particularly in the areas of transportation, logistics, travel and tourism.

As a remedy he proposed to the Government to allow 100% LTV financing as it could broaden the tax net of the Government by way of voluntary tax registration by existing SMEs to prospective SMEs which are not currently tax registered.

Noting that areas of transportation, logistics, travel and tourism need constant investments, Perera asserted that it would negate the future public private partnerships (PPPs) as finance limitations would discourage the private sector, particularly the SMEs which play a pivotal role in the economy.