CMTA calls for urgent budget action to plug Rs. 120 billion revenue leakage linked to 15% depreciation

Newswire reports that the Ceylon Motor Traders’ Association (CMTA), an automotive trade body affiliated with the Ceylon Chamber of Commerce, is pressing the government to end a 15% depreciation allowance for used vehicle imports in the forthcoming national budget. The association says the change would address public revenue losses and bring vehicle taxation under a more consistent framework.

Newswire reports that the CMTA puts the revenue shortfall at roughly Rs. 40 billion for 2025, and projects it could total Rs. 120 billion by September 2026. The association says the losses add strain to public finances, which it says are needed to support economic recovery, national development and essential services.

Newswire reports that the CMTA has presented the proposal in previous budget submissions made through the Ceylon Chamber of Commerce, but says the policy change has yet to be made. It is asking the government to act in the next budget, arguing that removing the allowance would reduce market imbalances and make vehicle taxes more consistent and transparent.

Written automatically by AI from the outlets’ own reports, and not reviewed by an editor. It can be wrong — the original report is the authority.