The Vehicle Importers Association of Sri Lanka (VIASL) has cautioned that prices of imported used vehicles are set to rise steeply following the removal of the 15 percent valuation reduction previously applied when calculating Customs values. Addressing the media, VIASL Vice President and spokesperson Arosha Rodrigo said the change will ripple across the market, with popular models facing sharp increases. A Honda Vezel Z Play SUV could cost around Rs. 2 million more, while a Suzuki Wagon R may rise by about Rs. 700,000, he noted. Rodrigo explained that the increase stems from revisions to the Customs valuation methodology. Under Gazette Extraordinary No. 1971/10 of June 14, 2016, two methods were prescribed: Section 1(A) for brand‑new vehicles and Section 1(B) for all other vehicles, including used imports. Authorities have long argued that the 15 percent reduction amounted to a concession, allowing vehicles first registered overseas as “new” to later qualify as “used” imports, thereby reducing government revenue. But VIASL countered that the adjustment was introduced by the Ministry of Finance to reflect the actual transaction value of vehicles rather than inflated retail prices. The Association stressed that retail prices often include dealer margins, local taxes, and overheads, while bulk discounts and negotiated rates in international trade mean the final purchase price is usually lower. The reduction, it said, was not a special concession but a mechanism to align Customs values with real costs borne by importers. Warning of the fallout, VIASL said higher Customs values will directly increase import duties and taxes, pushing up consumer prices and threatening the recovery of Sri Lanka’s vehicle import sector. The Association urged authorities to reconsider the decision, highlighting its potential impact on vehicle affordability and the wider market. (Newswire) The post Used vehicle prices to surge after 15% valuation reduction removed: VIASL appeared first on Newswire.
