According to State Minister of Finance Ranjith Siyambalapitiya, the benefit of preserving foreign reserves outweighs the loss of tax revenue caused by the ban of vehicle imports starting in May 2022.
The State Minister noted that the government reports Rs. 155 billion in tax collection annually from automobile imports, according to a statement from the Finance Ministry.
State Minister Siyambalapitiya stated during his yesterday’s speech in Parliament that the government lost 620 billion rupees in tax revenue as a result of the restriction on automobile imports between 2022 and 2023.
“In 2018, it was claimed that the importation of autos generated 192 billion rupees in tax income while costing 346 billion rupees. The importation of vehicles generated 122 billion rupees in tax revenue in 2019 while costing 225 billion rupees, he claimed.
Motorcycles, cars for public transport and industrial vehicles will be given priority in the future when import restrictions are loosened, said State Minister Ranjith Siyambalapitiya.
