CMTA's Sustainable Solution for Vehicle Imports
The Ceylon Motor Traders Association (CMTA) has proactively responded to recent rumours surrounding the reinstatement of vehicle imports. The association has submitted a comprehensive proposal to the authorities to stimulate economic growth, fulfill public transportation needs, and secure government revenue.
The proposal is divided into two key parts. The first part advocates for a gradual and phased approach to lifting the suspension on vehicle imports. This would begin with the reintroduction of two-wheelers and three-wheelers, followed by commercial vehicles, and finally passenger vehicles.
The second part of the proposal suggests implementing an increased tax regime by adding a 130% tax on imports with quarterly reductions. This systematic approach aims to restore the tax structure to its current level within a two-year timeframe, reducing the additional tax by 15% each quarter. This strategy is designed to discourage excessive vehicle imports once the ban is lifted.
The CMTA places great importance on regulated and sustainable import practices that protect the country's foreign exchange reserves. The association firmly opposes the importation of old vehicles due to the negative environmental impact, increased fuel consumption, and subsequent need for importing spare parts, which leads to a further outflow of foreign exchange.
Additionally, the CMTA discourages the importation of vehicles on supplier credit, as it could potentially facilitate illicit fund transfers to suppliers.
The CMTA's proposal demonstrates its commitment to collaborating with the relevant authorities to establish a well-designed framework for vehicle imports. Prioritising long-term sustainability and responsible economic growth, the association aims to bring about positive changes that benefit the entire nation.
Established in 1919, the Ceylon Motor Traders Association is the region's most prestigious automotive trade association. Affiliated with the Ceylon Chamber of Commerce, it represents vehicle manufacturers through their local franchise holders, also known as "agents."
The CMTA's members collectively employ and train numerous Sri Lankan citizens while introducing international best practices in engineering and management. This cultivates a talented workforce that is internationally employable. Members of the CMTA undergo audits by the manufacturers they represent, and the vehicles they import are shipped directly from the factory, specifically designed to meet country-specific requirements.
Source: CMTA
