10M Non Refundable Deposite To Obtain Vehicle Import Permit

[ramithad]

Government preparing to gazzete a new law related to vehicle imports. government introduce new permit scheme starting from Rs. 10M non refundable annual deposite to obtain vehicle import permit. no one else allowed to open LC or allowed to import vehicles into sri lanka. this law is bring to the satisfy few importers who held monopoly in vehicle sales in last two decades (very big ones in sri lanka- you know who) actually there are two vehicle importers assiciations in sri lanka and y@ga p#re#a represents above stated one. other vehicle importers association is represents largest number of members representing small scale importers in sri lanka which challanged to the monopoly of giants and represents largest market share in sri lankan car trade.

Once this new law is gazzeted, car price will be skyrocketed and GIANTS will be dominiate the industry again. no small sellers could efford to get the permit by paying Rs. 10M. GIANTS will add permit prices also into the final price+ huge profits thanks to the monopoly.

Today evening there will be a media conference to educate public. EXPECT GIANT PRICE HIKE VERY SOON!!!! AND CLOSE DOWN HUNDREDS OF SMALL BUSINESSES who sold cars for reasonable prices.

Edited April 20, 2012 by MADZ

[NZer]

How accurate is this information?

[malla]

So 10Mn paid every year to the govt to let a person or car sale to import cars..... There are ways to overcome this i guess.... All the small scale importers will pool into a fund every year and create one entity which will bring the cars under that name....

What will happen to permits then? A permit holder is expected to open the LC on his/her name???

[ramithad]

So 10Mn paid every year to the govt to let a person or car sale to import cars..... There are ways to overcome this i guess.... All the small scale importers will pool into a fund every year and create one entity which will bring the cars under that name....

What will happen to permits then? A permit holder is expected to open the LC on his/her name???

Permit holders have to open LC in his company name. pool of importers is not much use. there will be a import restriction for each permit scheme. some say 10M for 200 vehicles.

[kush]

Why not ban car imports altogeter and give duty free permits to all the morons who are running this country.

As we have highways and railways and excellent public transport the common kind can use them.

Or sell your current wheels, put the money into a ever increasing interest rate deposit and live off from your Rs. 7500/- interest income

[malla]

There is an article on dailymirror business page today.The 10mn registration has been proposed not confirmed... and its 50Mn for brand new vehicle importers

[MeanGreenZ28]

so what are they trying to achieve here? to reduce the amount of vehicles in the country?

[Flash_Bang]

Its easy. Government should get all European, Asian and American Car dealership in to one roof and point a minister for that and distribute via government... And they can say "All Vehicles should be import via Government dealership"

[VVTi]

so what are they trying to achieve here? to reduce the amount of vehicles in the country?

Bit late in the day for that now, sin't it? Proper regulations should have been there BEFORE, not after a whole mess has been created.

[Watchman]

so what are they trying to achieve here? to reduce the amount of vehicles in the country?

Its pretty much trying to weed out all the small-time importers. No importer who imports just 10-20 (or even a single personal import) cars can no-longer competitively price thier goods. Its not conna cut down the number of vehicles that come in, cos the need for vehicles will more or less be the same (except for the border-line cases of people who were able to bearly afford to personally import a car)...

No surprise there's some under-the-table incentive for some policy-maker somewhere up the chain..

[Flash_Bang]

so what are they trying to achieve here? to reduce the amount of vehicles in the country?

with in all those effect, If this approved there will be no Italian car dealerships and service centers like Porsche in near future.

[Chooti Putha]

Its pretty much trying to weed out all the small-time importers. No importer who imports just 10-20 (or even a single personal import) cars can no-longer competitively price thier goods. Its not conna cut down the number of vehicles that come in, cos the need for vehicles will more or less be the same (except for the border-line cases of people who were able to bearly afford to personally import a car)...

No surprise there's some under-the-table incentive for some policy-maker somewhere up the chain..

Thats exactly the main reason. Nothing to do with cutting down imports.

[CARBON B4]

this law is bring to the satisfy few importers who held monopoly in vehicle sales in last two decades (very big ones in sri lanka- you know who) actually there are two vehicle importers assiciations in sri lanka and y@ga p#re#a represents above stated one. other vehicle importers association is represents largest number of members representing small scale importers in sri lanka which challanged to the monopoly of giants and represents largest market share in sri lankan car trade.

It also seems that Y@ga p#re#a's association is backing the move to Hambanthota,... so could be a case of I scratch your back and you scratch mine....

[malla]

It also seems that Y@ga p#re#a's association is backing the move to Hambanthota,... so could be a case of I scratch your back and you scratch mine....

i was thinking the same... he has been meeting the top guys alot in the past few months.... a credible source told me that this association was behind the tax hike. They stock with new imports and gives the go ahead to treasury increase the taxes. They gain and they share the gain. BECAUSE the Treasury has the most honest people in Sri Lanka like PB. In about 3 more years they will reduce the Tax again and it’s the same cycle... No doubt that there is something under the table as usual.

50mn is a big amount even for a decent size car agent and if im not mistaken it an annual fee i think....

[malla]

im sure some of the govt henchmen would have setup a few car carriers to transport cars from hambantota

[ramithad]

i was thinking the same... he has been meeting the top guys alot in the past few months.... a credible source told me that this association was behind the tax hike. They stock with new imports and gives the go ahead to treasury increase the taxes. They gain and they share the gain. BECAUSE the Treasury has the most honest people in Sri Lanka like PB. In about 3 more years they will reduce the Tax again and it’s the same cycle... No doubt that there is something under the table as usual.

50mn is a big amount even for a decent size car agent and if im not mistaken it an annual fee i think....

Yes Its annual fee. If they bring this, we can see the true face of this leftist government.

[ramithad]

Yes Its annual fee. If they bring this, we can see the true face of this leftist government.

some sellers, i know very well imported few hundreds of vehicles and now selling for 7-8 laks profit. see how enormous money they will earn.

[The Don]

This is nothing but an extension of ill thought policies to save the country from becoming completely bankrupt. Taxes from vehicle imports is one of the few reliable sources of income the government has as large portions of our population does not pay income tax or the correct portion of income tax. And rather than get people to share the burden successive governments has simply over relied on the middle classes to fund the country via excessive taxation of things thought to be luxury goods.

I think most of my friends will agree that a TV, a washing machine or a fridge or for that matter a small car is hardly a luxury but a necessity in the modern nuclear families particularly families with children.

I think people have to remember the massive capital investment being made at the moment is via borrowed money and those loans need to be serviced So rather than create a stable political and economic environment which attracts investment and business to flourish, the policies change on a monthly basis.

I am sorry if I'm speaking out of turn but I feel rather angry and disappointed about this whole situation and the continuing uncertainty which affects everybody. I mean who can make any investment say on a car in this case with confidence about the money they will have to spend at the end to clear that vehicle. It is absolutely ridiculous!

On the other side we do have an issue with too many cars on the roads, but to solve that you need to improve public transport and promote initiatives like car pooling and give incentives for businesses who provide good staff transport.

[malla]

some sellers, i know very well imported few hundreds of vehicles and now selling for 7-8 laks profit. see how enormous money they will earn.

well more than 8 laks...