CMTA Warns of Rs. 40 Bn Revenue Loss in 2026, Urges Import Policy Reform 📈

The Ceylon Motor Traders’ Association (CMTA) has issued an urgent appeal to the government to abolish the 15% depreciation concession currently granted on used vehicle imports, warning of massive fiscal leakage. • Overall Revenue Impact: The association estimates that the current depreciation mechanism cost the government approximately Rs. 40 billion in lost revenue in 2025 alone. A similar leakage of Rs. 40 billion is projected for 2026 if immediate corrective action is not taken. • The Core Issue: Used vehicles currently receive a 15% depreciation on their Cost, Insurance, and Freight (CIF) value for duty calculation. However, the CMTA notes that the vast majority of these imports are virtually zero-mileage units with CIF values comparable to brand-new vehicles, creating an unfair and unjustifiable tax advantage. • Sector Impact & Policy Recommendations: The CMTA argues that this policy distorts the automotive trading sector and deprives the Treasury of critical public funds. To ensure a level playing field, transparency, and consumer value, the association recommends: • Abolishing the blanket 15% depreciation concession. • Closing structural loopholes that allow exploitation by certain importers. • Reverting to a structured framework (similar to the 2013 model) based on vehicle age, capped at a maximum of 10%, if any concession is to be maintained. _Note: Based on provisional statements and estimates released by the CMTA._