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Sri Lanka to abolish vehicle permit schemes, Rs40bn loss per year: Ravi K

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Nov 24, 2015 (LBO) - Sri Lanka's Finance Minister Ravi Karunanayake has proposed to end the tax-free vehicles given to state workers and elected ruling class as it has generated a 40 billion revenue loss per year to the government. Public servants and government officials were offered tax cuts to purchase vehicles of their choice, under the vehicle permit schemes. “The vehicle permit schemes have been politicized and misused and have created a huge revenue loss over 40 billion rupees a year to the government,” Finance Minister Ravi Karunanayake said in the budget for 2016.
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“I propose to abolish all the vehicle permits granted under different schemes, including to Parliamentarians,” he said.
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“However, I ensure all government officers will be financially compensated for the benefit foregone,” he said. “Further, all the vehicles purchased to the Government will be subject to all applicable taxes and necessary allocations will be provided in the budget.
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