The Hon. Mujibur Rahman

¶ 01 Hon. Presiding Member, new HS classifications for vehicles are tabled. The Minister noted higher Customs revenue. But Customs revenue rose to LKR 1 trillion because the Government imposed very high taxes on imports — not due to growth in production and trade. When Parliament raises taxes, importers pay more, and pass those costs to consumers. Duties on vehicles are 200% to 600%. Duties on many essentials have also risen, reducing purchasing power and increasing poverty; you are expanding welfare because poverty has risen.

¶ 02 In 2020, common working- and middle-class vehicles had far lower prices: Suzuki Every/“Buddy” vans, Wagon R, Spacia, Alto 660 cc — around LKR 2.5–3.5 million. Now: - Suzuki Every/Buddy van ~ LKR 7.5 million. - Wagon R ~ LKR 9.5 million. - Spacia ~ LKR 10 million. - Japan-made Alto ~ LKR 7.2 million. - Vitz was LKR 4 million; a Minister said it would be LKR 1.2 million, but Vitz isn’t even produced now; the Yaris 1000cc is ~ LKR 11 million.

¶ 03 Motorcycles: - Discover was ~ LKR 250,000; now ~ LKR 580,000. - Bajaj CT100 was ~ LKR 150,000; now ~ LKR 350,000. - Scooty Pep was ~ LKR 250,000; now ~ LKR 600,000.

¶ 04 The President asked youth if they want Japanese cars and bikes; today many cannot afford even a bicycle. Why? Because taxes have been hiked.

¶ 05 Taxes on essentials: - Rice: LKR 65/kg. - Salt: LKR 40/kg. - Wheat flour: LKR 46/kg.

¶ 06 State enterprise revenues have not been improved; instead, taxes on all imports have been raised.

¶ 07 On BYD: the court facilitated conditional release with bank guarantees. Meanwhile over 1,000 used vehicles are stuck at Hambantota. Ships have been turned away due to storage constraints, increasing demurrage payable in dollars (ultimately passed to consumers). The President oversees both Customs and the Import & Export Control Department. Why hasn’t he resolved the coordination? This shows lack of capacity. We propose granting similar conditional release to other importers to reduce demurrage.

¶ 08 Backdating Gazette: On 19 March 2025, a Gazette validated Bureau Veritas certificates from 31 January 2025 to release a vessel’s cargo — effectively backdating to accommodate a specific shipment. If that could be done then, why not facilitate solutions now for small importers? The law must be equal for all. Economic democracy is touted, but in practice we see “friends-of-the-President” economics — selective tenders and releases. This mirrors what he once criticized.

¶ 09 Finally, with such high taxes, Customs revenue may reach LKR 2 trillion, but it is the people who pay.

¶ 10 Thank you.