Duty reduction on Motorbikes, Mini Trucks and Single Cabs
Finance Minister Mangala Samaraweera announced a range of tax reductions to help boost local youth entrepreneurship. Including the removal of the 10% telecommunications levy (effective from September 1st, 2017), customs duty on mini trucks, single cab pickup trucks, and motorbikes under 150cc has been reduced (effective as of August 18th, 2017). The expectation is that these customs duty reductions will help local business startups grow and help fuel the overall economic growth in the country.
The changes many become more favorable to Japanese imports as all three vehicle segments are heavily represented by Indian brands. The drop in duty may open up the doors especially for Japanese motorcycles which have been unable to compete at the 150cc and lower spectrum due to high prices. Market perceptions of “‘higher quality” of Japanese motor vehicles over those of Indian ones could power the shift, but it is unlikely that Indian brands will lose significant market share as their price point will further reduce, making them even more affordable.
Public concerns regarding the increase in traffic congestion and road accidents has been seen in all online forums/social media, with multiple suggestions that the government needs to focus more on improving the public transport systems first.
The Government Has Approved Hike up of Traffic Fines Up To Rs. 25,000
Traffic fines will now increase up to Rs. 25,000, after a decision made by the government, the cabinet spokesperson and Minister Gayantha Karunatilaka said at a media briefing held on Aug 10, 2017. The decision was taken after a memo was presented to the cabinet by the Transport and Civil Aviation Minister Nimal Siripala De Silva as for the requirements of the Motor Traffic Act.
The increased fines will be implemented for offences that can range from, driving under the influence of alcohol or drugs, deploying a person without a valid driving licence in services, driving a vehicle without a legal driving licence, entering a vehicle onto a railway road in a harmful fashion and driving a vehicle without a proper insurance cover.
Back in 2016, a revised fine was also proposed for seven existing traffic offences in a bid to reduce the number of road accidents in Sri Lanka. Nevertheless, the proposal faced strong opposition from three-wheeler and bus associations. As a result, the president appointed a committee of officials to address the issue, which resulted in the above-mentioned recommendations.
Penalties will also be increased up to Rs. 25,000 for speeding offences, and will be imposed according to the percentage of the speed; the offence was carried out above the recommended speed limit.
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