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Sri Lanka Raised Import Duty on Vehicles

Sri Lanka, one of the key export destinations for Indian auto manufacturers, has raised import duty on vehicles, making companies jittery just as the government looks to take up the matter.

Sri Lanka has increased import duty on commercial and utility vehicles by over 100% and this comes after a similar move on two wheelers and small cars in April.

Companies like TATA Motors, Ashok Leyland, Bajaj Auto, Mahindra & Mahindra and TVS are major exporters to Sri Lanka. Last year, India had exported vehicles worth USD 6 billion, out of which USD 800 million had been sold in the Sri Lankan market.

Mr Vishnu Mathur DG of industry lobby group Society of Indian Automobile Manufacturers said that "Now this has almost gone."

India is considering diplomatic efforts to ask the Sri Lankan government to bring down the import tariffs.

Mr Rajeev Kher additional secretary in the commerce ministry said that "Obviously, we are concerned about it. We believe a very substantial rise in import tariff in Sri Lanka is going to adversely affect our car exports to Sri Lanka."

Mr Kher said that "There are many options, one option is to approach purely diplomatically, and request the Sri Lankan government because it is a win-win situation if they cut down the tariff."

Source: http://www.steelguru.com/indian_news/Indian_auto_majors_cry_foul_as_Sri_Lanka_hikes_import_duty/294815.html
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Indian Auto Majors Cry Foul as Sri Lanka Hikes Import Duty
Topics: Transportation