Vehicle importers have alerted the public to a risk of double-taxation on the sale of registered vehicles under the new tax policy.
President of their association Indika Sampath Merenchige said the industry would fall apart if no alternatives were found to importing vehicles without using up the dollars reserve.
The association has already pointed out to the government how that could be done.
Importers are further inconvenienced by the VAT imposition, he added.
Having a taxpayer identification number is compulsory from next month for the registration and transfer of vehicles.