Govt. promotes local vehicle assembly with tax reliefs

By Saman Indrajith

State Minister of Samurdhi, Household Economy, Micro Finance, Self-Employment and Business Development, Shehan Semasinghe told Parliament yesterday that the government had commenced a project to encourage local investors to promote vehicle assembling companies in the country.

Responding to a question raised by SLPP MP Mohamed Muzammil, the Minister said that several local companies had already started vehicle assembling plants and factories at various places in the country and the government would encourage them with incentives such as tax reliefs.

The Minister said that as of now vehicle imports had been suspended owing to the prevailing economic situation resulting from the pandemic crippling the economy.

Responding to a question by MP Muzammil that there was a shortage and a subsequent price increase of vehicle spare parts in the local market, the Minister said that such price change had been observed but the truth was that the government had not suspended importing of vehicle spare parts though there was a ban on importing motor vehicles. “There are no limits imposed on importing spare parts and there could be some price changes owing to the devaluing of the rupee in the face of the economic crisis. This situation and the suspension on vehicle imports would not be forever. In the meantime we encourage vehicle assembling in the country,” the Minister said.