5,000 imported vehicles in Sri Lanka dumped in yards without buyers

Oct 22, Colombo: Vehicle importers of Sri Lanka say that around 5,000 imported vehicles are dumped in yards due to lack of demand and declined sales.
The majority of these cars are brand new imported cars like Maruti which had a big demand before the tax increase.
Many of the vehicles were either ordered or imported before Sri Lanka increased the taxes in March on imported vehicles.
The Finance Ministry imposed heavy taxes of as much as 200 percent of import value on some models to curb the import of vehicles in a measure to control the rapidly expanding trade deficit and to curtail the expenses the government incurring in importing fuel.
The raising of taxes, the vehicle importers claim, has affected their business severely.
Sources at David Peiris Motor Company however say that they have sustained the three wheeler sales through price reductions offered by the producer despite that they are also struggling in two wheeler market to achieve sales targets.
Most of the vehicle importers expect the government to relax the taxes imposed in March to save the market. 


Source:
Mon, Oct 22, 2012, 10:52 am SL Time, ColomboPage News Desk, Sri Lanka.

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