ECONOMYNEXT - Sri Lanka will resume giving tax slashed cars to the state worker class, Finance Minsier Mangala Samaraweera said, while taxes on vehicles bought by private sector workers, who are treated as second class taxable serfdom, have been hiked again in a budget for 2019.
Sri Lanka halted tax slashed 'permits' for state workers as the Central Bank printed money in 2018, while trying to target an exchange rate and brought about a collapse of the rupee.
"Retired public servants will be allowed to import by permits from May 01," Finance Minister Samaraweera said in parliament during a debate on the budget.
Permits of other state workers will be restored in stages on a first come first served basis starting from June 2019, Samaraweera said.
Sri Lanka's elected ruling class gets completely tax-free vehicles. The ruling class preaches about traffic jams and the green economy to the public, while going around in BMWs, Mercs, and SUVs.
There have been no tax protests in Sri Lanka to create equity between the ruling and the ruled like France had agianst its aristocracy at one time. In this century, France's yellow vest movement (a garment that is carried in motorvehicles) is now protesting feel-the-pain carbon taxes. Sri Lanka's elected ruling class has also slammed carbon taxes on citizens while traveling in tax-free cars.
Samaraweera said the tax free permits were being restored because Sri Lanka's rupee has now stabilised.
The United National Party came with the promise of increasing car ownership and a 'social market economy' but failed to reform the Central Bank like Germany did, to create monetary stability fixing the Bundesbank.
The Central Bank busted the currency from 153 to 180 to the US dollar in 2018, after depreciating even in 2017, despite a massive balance of payments surplus it generated by mopping up inflows and curtailing domestic credit. (Colombo/Mar12/2019-SB)