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Budgetary taxes push profits of Sri Lankan motor vehicle companies downhill

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~ United Motors profits crash by 61 per cent

By now the revenue of motor vehicle sales centres have reportedly dropped drastically due to the tax policies on motor vehicles that are currently in force.

While United Motors Lanka PLC, a public listed company with the Colombo Stock Exchange released its annual report for the final quarter ending in December 2016 today (30 January), when compared to the corresponding quarter in 2015, the profit after tax for the quarter ending on 31 December has recorded a drop of 61.4 per cent.

The profit of Rs. 513.12 million recorded during the final quarter on 31 December 2015 has dropped to Rs. 198.1 million by 31 December 2016.

Furthermore, the profit earned by the company during the first nine months of the financial year 2016/17 has dropped by 45.1 per cent to Rs. 685.52 million from the earlier Rs. 1,249.62 million.

During the last quarter the company’s revenue had been recorded as Rs. 2,554.71 million, when compared to the last quarter which was Rs. 3,328.17 million, which is a drop of 23.2 per cent.


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