Sri Lankan rupee has fallen less than several regional currencies, Wasantha Samarasinghe says, defending vehicle import tax hike.
Sri Lankan rupee depreciation is lower than several regional currencies, Minister of Trade Wasantha Samarasinghe told Parliament while defending the vehicle import tax hike.
The Minister said that, amid the current dollar crisis, the currencies of several countries, including the Sri Lankan rupee, have weakened against the US dollar.
He stated that the government had taken steps to increase taxes on private vehicle imports in order to control the pressure created by the situation.
Samarasinghe pointed out that many countries across the world are now adopting different measures to respond to the dollar crisis.
According to the Minister, the Indian rupee has weakened by 6.4 percent against the dollar.
He further stated that the Nepalese rupee has depreciated by 6.2 percent, the Indonesian rupiah by 5.2 percent, the Philippine peso by 4.7 percent, and the Thai baht by 4 percent.
By comparison, he said, the Sri Lankan rupee has weakened by 4.8 percent.
The Minister revealed that, after the country’s vehicle market was opened within a short period, nearly US$ 2 billion had been spent on vehicle imports.
To control that situation, the government has decided to increase customs duty on vehicles imported for personal use.
Accordingly, duties that were previously at 100 percent and 130 percent have been increased to 145 percent for a period of three months.
However, Samarasinghe emphasized that this tax increase does not apply to public transport vehicles used by ordinary people.
He said buses, lorries, three-wheelers, and motorcycles have not been brought under this tax increase.
Minister Wasantha Samarasinghe further stated that the main objective of the decision is to protect the country’s dollar reserves.
He said the government also wants to limit vehicle imports to some extent and reduce oil consumption.
According to him, these steps are necessary to help Sri Lanka face the current crisis more successfully.
