Import Taxes Up in Sri Lanka

In a strange attempt to cut the trade deficit, the Sri Lanka government passed a new tax that equals out to 10% more over the already insane taxes equaling out to between 250 to 350 percent.

Sri Lanka has consistently have problems dealing with their trade balance as each year they import more than they export. To deal with the problem, they try to cut the amount of imports of the biggest category: cars. The problems with doing this include sky-rocketing prices for used cars. This is because Sri Lanka doesn’t produce any used cars, and if the government kinks the imports (by raising costs), demand go up and supply plummets.

Of course, the average person in Sri Lanka cannot afford a used (4-years old) Corolla that costs over $40,000. So what happens? The government indeed cuts off trade, but at the expense of it’s people. More sad days ahead for would-be consumers.

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7 Responses to “Import Taxes Up in Sri Lanka”

  1. Sri Lanka Customs Revenue Takes Hit « Japanese Used Car Importing Weblog Says:

    […] Lanka Customs Revenue Takes Hit Just last month, we reported how Sri Lanka raised import taxes by 10%. This month we are seeing the protest of importers have effect. Instead of raising revenue the […]

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  4. Peltier Cooler : Says:

    at home we have a use car that is a Nissan Murano. i love it..

  5. Manel Kurukulasuriya Says:

    in this case what can i say in our country only very clever ministers and there family’s can use good cars and jeeps including precedent and his all family members as Srilankans we are helpless government administers cheating us very sad

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