Motor bicycles to cost more

The prices of the country’s most demanding vehicle, the motor bike, are expected to increase by 5 percent, according to new import duty changes, motor bike importers point out.
It has happened as a production duty of 20 percent, which was not levied earlier, has been imposed.
As the duties are counted on compound interest, the overall price of a motor bike has increased by 5 percent even though the import duty has been slashed.
The secretary of the association of importers of the motor bikes, Anil Ranathunga says that, as the import duties are slashed, the prices of Indian and Chinese motorbikes would come down from 7 percent.
However, it is the Indian motorbikes that are mostly used in Sri Lanka. Also as many people purchase motor bikes at an annual interest rate between 12 to 18 percent, there is also the risk of an increase in public credit.
Though three-wheelers and motor bikes are mostly used by the ordinary people, their duty had been slashed only by 10 percent. Thus it seems that the real profit of the duty slash is not enjoyed by the ordinary people.
(KLB)