The new taxes proposed on motor vehicles through budget 2019 will only apply for letters of credit (LCs) opened after March 6, Finance Minister Mangala Samaraweera said.
The Minister made these remarks at a press conference held at the Ministry of Finance today.
Samaraweera said that many false rumours are being spread by the joint opposition alleging that revised taxes will be imposed on LCs opened before March 6 and reiterated that such claims are incorrect and that they are merely attempting to mislead the public.
He pointed out that in 2018, in spite of an increase in taxes, there was an influx of vehicles into the economy resulting on pressures on the exchange rate. The Central Bank in response announced a 200% cash margin for LCs in September last year to restrict vehicle imports.
“But as I announced in Parliament, this restriction has been lifted since last Friday,” Samaraweera said adding that the prices of some of the smaller vehicles that are used by low income populace as well as electric vehicles have actually come down.