The government has introduced new regulations on vehicle importers concerning the Cost, Insurance, and Freight (CIF) value of imported vehicles as part of its plan to lift import restrictions, according to reports.
As stated in The Sunday Times, a senior Treasury official explained that the regulation aims to prevent dealers from bulk-importing vehicles and hoarding them, which could spark another Dollar crisis. In line with commitments to the International Monetary Fund (IMF), the government plans to gradually lift vehicle import restrictions by year-end across different vehicle categories.
Key Regulations for Vehicle Importers
- Registration Requirement: All imported vehicles must be registered within 90 days. Failure to register within this timeframe will incur a tax of 3% of the vehicle’s CIF value.
- Sales Restrictions: Vehicles cannot be sold with garage number plates, reinforcing the requirement for timely registration.
Staged Plan for Lifting Import Restrictions
- Tourist Coaches and Passenger Transport Vehicles: Beginning next month, a Cabinet Paper will propose the removal of restrictions on tourist coaches and other passenger vehicles, pending Central Bank of Sri Lanka (CBSL) approval.
- Industrial Vehicles: In November, a proposal will be submitted to lift restrictions on industrial vehicles, including lorries, tipper trucks, and backhoes.
- Personal Use Vehicles: Restrictions on cars, vans, and jeeps are set to be lifted starting February next year, with the Cabinet Paper expected in January.
Import Status of Other Vehicles
- Motorcycles: The Treasury has recommended lifting import restrictions, though no specific date has been confirmed.
- Three-Wheelers: Due to environmental concerns, the government has no plans to lift import restrictions on traditional three-wheelers, allowing only electric models for import.
These measures reflect the government’s cautious approach to reopening vehicle imports while managing potential economic impacts and environmental considerations.
