CMTA Calls for Abolition of 15% Used Vehicle Import Depreciation 📈

The Ceylon Motor Traders’ Association (CMTA) has urged the government to remove the 15% depreciation allowance currently granted on used vehicle imports, citing significant revenue losses and market distortion. • Key Proposals: Abolish the 15% depreciation on CIF value for used vehicles, arguing many have near-zero mileage and prices comparable to brand-new units. Implement a structured depreciation table based on age, with a maximum cap of 10%. Ensure vehicles are registered within 3 months to prevent foreign currency leakage from stockpiling; penalties for non-compliance range from 4% to 40%. • Economic Impact: The CMTA claims the current policy creates "revenue leakage" for the state and lacks "plausible justification." Emphasizes that brand-new vehicles imported via authorized agents save foreign currency through manufacturer warranties, which cover parts and repairs for up to 5 years. • Market Fairness: The Association argues that if affordability is the goal, similar concessions should extend to the automotive authorized agent sector to ensure fair competition. The CMTA remains open to supporting a transparent, structured framework aligned with national revenue objectives.