The National People’s Power (NPP) Government deserves plaudits for deciding to do away with the luxury car permit previously issued to our erstwhile people’s representatives. This was a sheer waste of precious foreign exchange, even when Sri Lanka’s economy was on a much better footing.
Under each permit, an MP was allowed to bring in a vehicle worth up to US$ 55,000 (Rs.16 million duty free). Multiplied by 225, this amounts to US$ 12,375,000. Right now, in the present state of our economy, handing out MPs’ vehicle permits would be sheer lunacy in any case.
There were several other factors at play vis-à-vis the vehicle permits. First, many MPs sold their permits at astronomical sums to private buyers, who then imported luxury vehicles. Second, the MPs who did use their permits imported gas-guzzling eight cylinder vehicles, which placed a further strain on the economy as the vehicles ran only 4-5 Km on a litre of petrol or diesel.
Third, the spare parts for these vehicles are also very expensive, adding another layer to the forex burden. Fourth, this was a huge loss to the country’s coffers, as no duties and taxes were charged on these vehicles apart from a laughable Rs. 1,750 port clearance fee.
To their credit, the NPP MPs imported only basic double cab pickups, which are more than enough for everyday travel. Even with all duties and taxes paid, these cost only around Rs.10 million before the Rupee plunged to today’s levels. Actually, double cabs are perfect for MPs from remote areas who have to traverse hilly, gravel or uneven terrain. They are as comfortable as many of the luxury SUVs that our MPs have embraced. Yes, the MPs and Ministers do need vehicles to discharge their duties. There are a few alternative solutions that the Government can try now that car permits are passé. One is to provide duty paid diesel-powered double cabs or suitable mid-level Corolla/Sunny/Civic class cars or SUVs, either electric or with 1.5 litre gasoline engines on an instalment basis to deserving MPs who may not have enough funds to buy a vehicle. Priority should be given to locally assembled vehicles in this regard.
All others should be requested to buy duty paid vehicles from the open market when car imports begin, probably from February next year. Again, they should be encouraged to buy imported electric or New Energy Vehicles (NEVs) or locally assembled vehicles. Also, no Government functionary apart from the President and the Prime Minister should get so-called back-up security vehicles, which were also luxury Range Rovers and Land Rovers most of the time.
Now that the Government has decided to do away with MPs’ car permits, it should also terminate all other duty free/duty concession permits issued to religious dignitaries, Public Servants, professionals and certain other categories. The only exception should be Sri Lankans who bring glory to their Motherland through sports or some other endeavour and expatriate workers who have remitted funds back home through legal channels for at least 10 years.
Of course, duty free facilities should also be extended to the import of ambulances, hearses, firefighting vehicles, certain agricultural/commercial vehicles and vehicles modified for use by the differently-abled.
Instead of granting duty free or concessionary duty permits for various categories, there should be a rational duty and tax structure for car imports, with minimal taxation for NEVs. As things stand, imposing a 350 percent tax on a 1.0 litre car or a NEV makes little sense. Buying a vehicle is an aspiration for many Sri Lankans wary of the woeful state of the public transport system and the authorities should not place unnecessary barriers on private car buyers without drastically improving that aspect. One example would be building the Malabe-Colombo Light Rail Transit (LRT) system, which can keep thousands of cars away from the road. The Government should also expedite the planned auctioning of 344 luxury vehicles previously used by former MPs, Ministers and Presidents. Leave alone Ministers, even some Ministry Secretaries and other senior officials used luxury Range Rovers and Toyota Landcruisers. In the absence of new imports, there is a pent-up demand for these relatively new luxury vehicles among wealthy individuals and the business community.
The Government could raise millions of Rupees from this auction, which can be diverted to a worthy cause such as bringing in modern ambulances for the 1990 Suwa Seriya Ambulance Service which is facing a dire shortage of new ambulances. The auction process (by a qualified auction house) should be fully transparent with prior TV and print advertising in all three languages, time slots for inspecting the vehicles and it could even be telecast live.
While the Government’s drive to literally downsize the vehicle fleet is praiseworthy, at no time should the security and safety of President Anura Kumara Dissanayake (who is also Commander-in-Chief of the Armed Forces) and Prime Minister Dr. Harini Amarasuriya be compromised. Cars used for VIP transport have at least B7 Protection that can stop armour-piercing bullets from high-velocity rifles. They also have run-flat tyres that can travel up to 80 Km and an on board oxygen tank in case the car is subjected to a chemical or biological attack.
While President Dissanayake is rather well known for his simplicity and humility, in the matter of Presidential transport, he should take no chances. In short, he should never ever travel in an ordinary, non-bullet proof car as long as he is President. No expense should be spared in protecting the President and the Prime Minister, as is the practice everywhere else in the world.
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