Deputy Minister of Finance Anil Jayantha Fernando said the government has not taken any decision to reduce taxes or reduce prices during the importation of vehicles.
Addressing the media today, the Deputy Minister said his recent statement during a post-Cabinet press briefing had been misinterpreted, with the media reporting that Sri Lanka may cut taxes on vehicles if the demand is lower than expected following the lifting of vehicle import restrictions in February.
Providing a clarification, Deputy Minister Anil Jayantha Fernando said, at the time, he had only mentioned that there may be changes in the prices in the local market due to the demand and purchase of vehicles.
He further said that vehicle import restrictions have not been relaxed under normal market conditions, but under limits, especially foreign exchange.
“Even though importers have been given freedom to import, on the other hand, the Central Bank will monitor the foreign exchange being utilised for this purpose,” he said.
Deputy Minister Anil Jayantha Fernando said the Central Bank will decide on the release of foreign exchange or any changes to the process, based on the letters of credit (LC) requested for vehicle imports and the market performance.
“We do not have definite information on whether vehicle prices have increased or dropped in the local market, just yet,” he added.
He further said any decision regarding vehicle imports will be officially announced by the government or relevant state entities.
The Deputy Minister reiterated that the news claiming a reduction in taxes during vehicle imports was incorrect, and urged the public not to be misled. (Newswire)
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