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Wahanaya Team · 11 days ago
US Took Sri Lanka's Used-Car Tax Formula to the WTO — Fair Complaint or Overreach?
Since 2016, Sri Lanka has taxed imported second-hand vehicles using the '85% rule' — the taxable value must be at least 85% of what an equivalent brand-new vehicle costs (before tax) in the country it came from, no matter the car's real age, mileage or condition. The US has now filed a WTO complaint saying this breaks trade agreements Sri Lanka signed. Officials admit the formula is legally shaky but say scrapping it fast would blow a hole in government revenue, so any change will be slow.
One side says the rule is just a disguised way to squeeze extra tax out of buyers and protect the margins of local assemblers and dealers who sell new or semi-new stock. The other side says scrap it and recon imports flood in even cheaper, hurting local industry and tax collection when the country can least afford it.
Has anyone actually been hit with a valuation that felt way higher than what your imported car was really worth? Would a straight depreciation-based valuation be fairer, even if duty goes up elsewhere to cover the gap?
මෙම 85% රීතිය නිසා ඔබේ රථයේ බද්ද අසාධාරණ විදියට වැඩි වුණාද?
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