Hybrid car importers want relief; say Budget tax hike merciless
Thursday, 5 February 2015 00:52
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By Waruni Paranagamage
Individual importers of hybrid cars who have been impacted by the sudden tax increase in the Budget yesterday called for relief from the Government.
They requested that the Government give relief to hybrid vehicle importers who had opened LC accounts to reserve a vehicle from Japan before the Interim Budget came into effect by releasing them from the tax.
The Interim Budget proposed revised excise taxes applicable on hybrid vehicles in view of the unhealthy tax disparity between hybrid and normal motor cars.
Union of Victims of Hybrid Vehicle Tax Organiser Uthula Saranga Jayaweera said the changes that had been implemented on the night of 29 Thursday following the Interim Budget presentation earlier that day, leading to hybrid vehicle importers having to fork out a further Rs. 7 to 11 million tax payment to the Ports Authority in order to obtain their vehicles.
“We met more than 700 victims who have been rendered helpless by this tax. If we aren’t able to make this payment and obtain the vehicle immediately, the vehicles will then be put up for auction,” Jayaweera claimed.
Some of the buyers who have been saving up to purchase a personal vehicle for their families speaking at the press conference emphasised that such a large tax hike was unbearable as they could not make the required payments while also repaying leases or loans obtained to purchase hybrid vehicles.
They said the cheapest lease rates in the country for hybrid cars provided a great incentive for them instead of having to purchase cheaper quality and smaller Indian gas guzzlers.
While the union is scheduled to hold discussions with Finance Minister Ravi Karunanayake on 11 February in this regard, Jayaweera noted that the importers would be also subjected to a late payment penalty by the Ports Authority if the Government did not take immediate action and provide a remedy.
Union of Victims of Hybrid Vehicle Tax Organiser Uthula Saranga Jayaweera (third from left) addressing the media. Also looking on from left are union members Network Engineer Madura Eleperuma, Manager Chandika Weliwita, Software Engineer Sriyani Keragala, Software Engineer Kavinga Gunasekara and Principal Vindya Vithanage – Pic by Daminda Harsha Perera
