CMTA to seek FM’s intervention to redress burning issues
It has once again been a troublesome period for the Auto Industry in Sri Lanka with the usual short term and ad-hoc policy changers hurting the industry very much, opined reelected Ceylon Motor Traders Association (CMTA) Chairman Reeza Rauf.
Addressing 97th CMTA AGM on Friday Rauf said that they have been constantly lobbying with the government in that regard and would continue to do so from time to time until a fair policy is implemented.
“The adverse policies also have created a ‘no level playing field’ in the market while certain sectors especially in the used car imports continue to benefit. It is also very unfortunate that the relevant government institutions fail to recognize our contribution to the economy, while the policies adapted and implemented are favoring only certain segments when you compare as a whole in the industry, specifically used car imports,” he said.
Reeza further cautioned that the present valuation system for import of used vehicles adapted was far more detrimental to the government and the lost revenue is immense. This would be very evident if the authorities could carry out a proper investigation and analyze the market trend for the last one to, one and a half years period.It has been very unfortunate that in spite of bring this to the attention of relevant authorities, no hearing nor considerate has been given to the legitimate importers of brand new vehicles, Reeza said.
In addition to the chaotic tax policies the industry was further hurt by the restriction of credit facility of LTV, to 50% for motor cars/SUV’s, 70% for motor cycles and 25% for three wheelers which dampened the demand from customers to purchase at least a low end motor vehicle through vehicle finance. It is also much regretted that the government decision to allow to import and register vehicles assembled by importing age old used spare parts contravening all safety standards and risking the life’s of the general public who were unaware of the dangers.
This was also contradicting the budget proposal of 2016 where it suggests to re-export vehicles which were five years and older, whilst these so called used parts could be well over five to 10 years, he cautioned. Reeza however said that the CMTA was very much aware of the present situation the government was faced with in bridging the gap of BOP.
However, the industry cannot suffer or close down but need to find a mechanism for sustenance of the stake holders to safe guard the industry and thousands of employees who are dependent on this industry and also not jeopardizing the future growth.“It is our humble appeal to the government to heed to our plea to protect the stake holders and the Industry,” the CMTA Chairman said adding that the association plans to meet Finance Minister Mangala Samaraweera soon to discuss the burning issues the industry was facing today.
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