Many drivers are benefitting from duty free concessions on newly-purchased used vehicles and its costing the Customs Division just around two million dollars monthly.
But Comptroller of Customs Raju Boddu says the losses are offset by the consumption tax even though empirical information is not yet available on the precise details.
Boddu says the incentive is an example of government’s commitment to supporting the needs of those low income families who cannot afford to purchase a brand new vehicle.
The Comptroller of Customs says the Government’s coffers still benefits significantly. He says importers still have to pay the ABST and the Revenue Recovery Charge.