Prolonged debate over duty free vehicle permits for SL expat workers

Prolonged debate over duty-free vehicle permits for SL expat workers

By Bandula Sirimanna

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The Finance Ministry is weighing the pros and cons over the issuance of guidelines and the relevant circular to implement the duty-free vehicle permit scheme for Sri Lankans working overseas, official sources revealed.

Former President Mahinda Rajapaksa’s 2015 Budget proposed concessionary permits similar to those given to public servants to Sri Lankans working abroad to import a motor vehicle limited to 60 per cent of the foreign exchange they remit to Sri Lankan banks.

A senior Treasury official told the Business Times that the Ministry has to close each and every loophole in the procedure before issuing these permits in order to prevent any abuse.

The trade and tariff division of the Finance Ministry has to determine as to whether all Sri Lankans working overseas are eligible for the scheme or a certain section of employees like professionals or whether there should be a ceiling on foreign exchange remittances, etc.
Chairman of Ceylon Motor Traders Association Gihan Pilapitiya told the Business Times that they were waiting to see the relevant circular which has to be issued by the ministry soon to implement the budget proposal.

He noted that many Sri Lankan expatriates are inquiring from motor traders about the scheme.

Overseas Sri Lankans have also been inquiring about the scheme as the authorities have not taken any action to implement a proposal that was approved six months ago.

In an e-mail to the Business Times, Asoka Rupasinghe former chief accounting officer of the Bank of Ceylon, now serving in the Middle East noted that Sri Lankan exporters have been given a plethora of incentives but nothing has been given to expatriate workers who contribute over 40 per cent of the country’s foreign exchange revenue.
“What happened to this (duty-free) scheme? Why hasn’t the new government given this incentive”, he asked.

Other sources said the Governor’s return is likely to be connected to the preparation and release of the Central Bank’s annual report for 2014, which is already delayed.

In the past few years, the report has been released in the week before the Sinhala and Hindu New Year.

Souce;- http://www.sundaytimes.lk