Lubricant players concerned over increase in duty and taxes on synthetic lubricants

Thursday, 23 March 2017 00:00 - - {{hitsCtrl.values.hits}}

The recent steep rise in duty and tax imposed by the Government on synthetic lubricants effective mid-November is causing alarm in the market, as lubricant suppliers are now starting to pass on the hike to the end users, the Ceylon Motor Traders Association stated yesterday.

In a statement, the association pointed out that duty and taxes have been increased by 31%, which has forced suppliers in the local lubricant market to increase prices accordingly and consumers are affected adversely as they have to pay substantially higher prices as a result. Local franchise car agencies too are affected, as they are forced to pass on a substantial cost increase to the customer, it noted.

“Unfortunately, this duty and tax hike will only result in discouraging the vehicle owners from using synthetic lubricants due to the high price. This is not a welcome development for the country as synthetic lubricants help vehicles to perform better, when compared with conventional oils, thereby saving exchange for the country and less emissions,” the association said.

With vehicle manufacturers’ encouraging the use of synthetic lubricants for all types of vehicles, the move by the Government will severely impact vehicle owners, it warned.

“Synthetic lubricants are proven to be more environmentally friendly, as emission levels are comparatively lower, draining intervals are higher and resultantly more mileage could be achieved,” it added.