CMTA urges government to abolish 15% import depreciation concession on used vehicles
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The Ceylon Motor Traders’ Association urged the government on 30 October 2026 to abolish the 15% depreciation concession on used vehicle imports in the upcoming 2027 Budget.
Under the existing system, used vehicles receive a 15% depreciation allowance on Cost, Insurance and Freight value for duty calculations. The association noted that many imported used vehicles are virtually zero-mileage units with values comparable to brand-new vehicles.
The association estimated that the concession resulted in approximately Rs. 40 billion in lost government revenue in 2025, rising to an estimated Rs. 120 billion by September 2026.
The body stated that eliminating the concession would prevent revenue leakage, remove market distortions, and establish a unified, transparent automotive tax structure.
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How the story developed
- EThe association urged the government to abolish the 15% depreciation concession on used vehicle imports.
- EThis storyThe association requested the removal of a 15% depreciation concession on used vehicle imports.
- EThe Ceylon Motor Traders’ Association demanded action regarding a 40 billion rupee automotive revenue leak.
