Sri Lanka, May 22 -- The Committee on Public Finance (CoPF) has raised concerns over potential revenue losses arising from inconsistencies in tax collection on imported motor vehicles, particularly used and short-distance driven units.

During a recent meeting, CoPF Chair MP Dr. Harsha de Silva questioned officials from the Sri Lanka Customs Department on the taxes levied on both registered and unregistered vehicle imports. He specifically sought clarification on the collection of Value Added Tax (VAT) on used vehicles and whether the process was equitable and efficient.

Officials informed the Committee that there is a variation in taxes imposed on used vehicles that are not registered and that have been driven only short distances. The ...