The prime minister and the finance minister have agreed to a proposal in this regard by UNP MP S.M. Marikkar at a workshop for government parliamentarians in Bentara yesterday (29).
The budget proposes to grant a monthly allowance of Rs. 15,000 for five years in place of the duty free vehicle permit given to public servants.
At the workshop, Marikkar and several other MPs expressed their opposition to the proposal.
Public servants and university lecturers too, have criticized it, while government medical officers are to stage an island wide protest without notice this week over the matter.
Loss of Rs. 147,300 m tax revenue
The finance ministry says the state has lost tax revenue of Rs. 147,300 million due to the duty free vehicle permits given for 32,287 vehicles from 2012 to August 2014.
Only Rs. 63,080 million had been earned for the state through these vehicle importations.
The numbers of vehicles imported free of duty in 2012 were 7,482, in 2013 were 11,622 vehicles, in 2014 were 6,329 vehicles and up to August 2015 were 6,854 vehicles.