Central Bank looking at proposal to permit dollar-paid vehicle imports
The central bank is looking at a proposal to allow persons who can pay in foreign exchange to import vehicles and pay taxes in hard currency, Central Bank Governor Nivard Cabraal said last week.
He said that this was a proposal made by certain parties whom he did not identify making clear it was at a proposal stage with no decision taken. But it was under examination.
Asked whether Non-Resident Foreign Currency (NRFC) account holders – now called Personal Foreign Currency Accounts – would be permitted to use their resources to import a vehicle provided they would pay the applicable duty in hard currency, he said that he did not see why not.
“If the vehicle is paid for in hard currency and not converted rupees, and the duty also accrues to the government in hard currency, I don’t see any harm, in fact it would be good,” he said.
It would also mean that there’s are new vehicles coming into the country not paid for by rupees converted into hard currency plus a hard currency duty stream, an analyst said.
Banning vehicle imports on account of the present foreign exchange crunch has cost the government an immense revenue stream.
(Source: The Island)
Latest Headlines
- Reform momentum must continue despite tentative signs of improvement in Sri Lanka Economy – IMF June 2, 2023
- Government’s objective is to develop Sri Lanka as a thriving nation by 2048 June 2, 2023
- Sri Lankan Rupee appreciates against U.S. Dollar June 1, 2023
- Professionals belonging to 14 categories required to register with Inland Revenue Department from June 01 June 1, 2023
- Bruno Divakara remanded until June 07 June 1, 2023
- Over 9,000 dengue cases reported in Sri Lanka in May, 2023 June 1, 2023
- Sri Lanka unexpectedly cuts rates by 250 bps as inflation eases June 1, 2023
Absolutely right. You should not allowed to buy anything with a useless toilet paper called Sri Lanken Rupees.