Import of electric cars:

Apply old tax rate for LCs already opened- Professionals

by Rukshana Rizwie

A group of professionals comprising doctors, engineers and middle income citizens has appealed to the government to allow them to import electric vehicles such as the Nissan Leaf at the former tax rate of 5% as they have already opened Letters of Credit (LCs).

The spokesperson for the group, Adeesha Attanayake said they have obtained the signatures of over 100 people, who had made arrangements to purchase the Nissan Leaf cars before the Budget when the tax was 5%.

"The Letters of Credit cannot be reverted or changed, as such if the government proceeds with the 900% tax proposed in the Budget, these people will be helpless since they cannot afford the Rs. 5 million increase," he said. "All we ask of the Govt. is to allow these people to clear the vehicles at the old tax rate, as the vehicles were ordered before the Budget."

He said that the government had not mentioned anything about increasing tax by 900% before the Budget. Importers who had agreed to pay between Rs. 200,000 to Rs. 250,000 would now have to pay over Rs. 5 million in taxes. He further said that these vehicles were ordered for personal use by these people who had also taken bank loans.

"Once the LC is opened, there is a slim chance of changing or reverting the agreement since it has already been signed. This would mean that the buyer will need to proceed with the purchase of the vehicle at any cost," Attanayake said.