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Sri Lanka civil servants to get new cars at low prices

April 6, 2007 (AFP) - Sri Lanka is offering drastic customs duty cuts to help over 20,000 civil servants import new cars, the finance ministry said Friday.
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The move was to fulfil an election promise made in 2005.

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Senior public officials, including police and military personnel, with over five years of service will be entitled to import a car, sports utility vehicle, or a pick-up truck by paying as little as 25 percent of the normal tax.

Vehicles are expensive in Sri Lanka which slaps import duties ranging from 250 to 350 percent.

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"We estimate around 20,000 or more public employees will be eligible to import cars under the concessionary tax scheme," S. H. Samaratunge, Director General of the Finance Ministry, told AFP.

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Those with five to 10 years of service can import a 11,500 dollar petrol powered car with 1.
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3 litre engine capacity by paying 25 percent of the normal tax.

They could also import a more economical 2.8 litre diesel vehicle up to a maximum value of 16,000 dollars by paying 45 percent of the regular tax.

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"Those eligible must import brand new vehicles," Samaratunge said.

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Car dealers said the limits on the

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