The government’s plan to generate Rs. 600-700 billion in tax revenue from vehicle imports is facing challenges, according to Deputy Minister of Finance Anil Jayantha.
Speaking at a media briefing at the Government Information Department, Jayantha stated that if the expected tax revenue is not met, the Central Bank is considering reducing vehicle import tax limits to ease the burden on importers.
Meanwhile, a leading automobile company in Sri Lanka has begun offering significant discounts due to a lack of vehicle orders. Some models are being sold with price reductions of up to Rs. 1 million, as dealerships struggle to meet sales expectations.
Despite a surge in pre-orders from vehicle importers before the tax hike, a large number of these orders have been canceled following the implementation of the new tax structure. Many importers are now hesitant to import and sell vehicles under the revised regulations, instead opting to secure pre-orders before committing to imports.
With fewer vehicles entering the market and declining consumer demand, authorities are now under pressure to review and possibly reduce import taxes to stabilize the sector.
