Sri Lanka, Feb. 17 -- The Vehicle Importers Association of Sri Lanka (VIASL) has hit back at recent remarks by Deputy Minister Dr. Anil Jayantha, warning that changes to the Social Security Contribution Levy (SSCL) could dramatically increase taxes on vehicle imports.

While the government claims no new tax is being introduced, the Association says the shift of SSCL collection from the point of sale to the customs stage effectively amounts to a hidden tax increase. Currently, the 2.5% levy is halved to 1.25%, as it is calculated on 50% of turnover under Inland Revenue provisions. The proposed change will apply the full 2.5% at import and, critically, this amount will also form the base for calculating 18% VAT.

"The practical impact of th...