CMTA expects current tax rates to remain

Due to current economic constrains the government would want to keep the current tax rates for the import of motor vehicles, said Sheran Fernando, Chairman who was reelected to the Ceylon Motor Traders’ Association (CMTA) at their 98th AGM at Hilton Colombo Residences, Colombo on Friday.

“This tax structure is expected to continue for at least another two years as the government wants to limit foreign exchange used to import vehicles.”

He said that this is having a negative impact for the industry and already there is a low demand for import of vehicles. “it’s a challenging year for all of us.” The Government and several donor agencies are keen to develop a traffic management system and improve the existing road network for Sri Lanka.

“In 2019, the association is looking to develop a policy document, detailing future mobility plan for Sri Lanka”.

CMTA is looking to work with international applied research agencies and international donors to create this document. “Once created the association will work closely with the government towards the implementation of the recommend policy.”

He said that one of the key aims of these were to reduce traffic congestion and also increase the number of kilo meters to local road network. (Add new roads.)

He said that the Millennium Challenge Corporation, Asian Development Bank, World Bank and other donor agencies have pledged over US$ 300 million for several such projects and the government too is working with these projects to reduce road congestion which is a major concern.

Fernando said that the World Bank to is interested in working with the private sector to create a future mobility plan for Sri Lanka.

Speaking of the future of the global motor industry he predicted that cars would be electric (EV) and they would driver-less cars. Customers are preferring mobility solutions over ownership while car sales were declining globally. “Shared mobility solutions are growing like for Uber, Lift etc, while numerous non-automotive EV start-ups are emerging”.

These changes will have far reaching impacts on the automotive industry and revenues for those people involved in sales and even after sales too would come down.”