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Cabraal wants vehicle import tax to be paid in USD to ensure financial stability

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The Central Bank of Sri Lanka (CBSL) has planned to propose to the Government to import vehicles by paying taxes in US dollars.

CBSL Governor Ajith Nivard Cabraal explained how this would impact the country if the Government accepts this proposal.

“As the CBSL, a responsibility that is vested with us is to ensure the financial stability of the country. If there is a price increase of a particular item and if it creates a bubble, we need to be mindful of that. There is a bubble being created when it comes to this vehicle importation issue that can cause some sort of danger to our economy, which can cause danger to our economy in the future. Therefore, I believe that if we can import vehicles using foreign currency and create a system to pay the taxes in the importation process using foreign exchange, and by doing so we will get foreign exchange to the country and on the other hand we will get the vehicles to the country as well. We are hoping to inform this to the Government,” said Cabraal.

He further went on to say that an approach as such is vital as there is a major requirement of vehicles in the country, whereas the imported vehicles are expensive, and such a system needs to be created so that foreign exchange will flow into the country by this means.

“When you consider all aspects, this proposed plan is favorable. As the CBSL, we can propose this to the Government,” Cabraal finally concluded.

Morning.lk

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