Hasty changes not healthy for ailing motor industry- CMTA | Daily News


 

Hasty changes not healthy for ailing motor industry- CMTA

While welcoming the initiative taken for duty reduction on motor cycles and small trucks Ceylon Motor Traders Association's (CMTA's) view is that sudden changes of that nature is not healthy for the industry, said CMTA Chairman Reeza Rauf.

“If you look in depth the reality is that there is no significant difference as highlighted by certain media and there will not be a significant price reduction for motor cycles, the chairman cautioned. Earlier the change the import duty for motor cycles was computed by two methods either FOB based duty and Engine Capacity based duty on unit rate, whichever was higher was applicable. Majority of the brand new motor cycles was computed at the unit rate system therefore the discontinuation of 90% excise duty or the FOB based duty method will not give a substantial benefit, contrary to the expectation of the consumers,

Even in the case of the small truck the reduction of Rs. 300,000 will not help the consumers very much as yet the retail price would be around 1.6 million which is considered yet too high in price, he said. The CMTA wishes to reiterate that the policy makers should not resort to shortsighted sudden changers, rather look at more wide and open minded policies that are beneficial the consumers and as well as the Industry.

“The government is always trying to fulfill the needs of the so-called common man and it is very unfortunate that all the co so-called common man is always looking for relief or in other words Sahana. If we are to move ahead of becoming a developed nation this mind set has to change, Rauf pointed out. When exorbitant and unrealistic duty amounts are imposed it is very obvious that the consumer cannot afford it and then the consumer is always looking for this so-called Sahana.

It’s high time that policy makers look at matters from a common man’s point of view of what he can afford and also at the same time see how to protect the automobile and transport industry in continuing their day to day business activities in a healthy manner, where this play the major role in the development of the country, the chairman added. 


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