Vehicle Import Duty (All Categories) Increased Today!

[sampath_fer]

I'm trying to clear my car today and heard this sudden news from the forwarder...more than Rs 2 lks increase for me !!! Well made a few calls here n there in Customs...Import section guy said " maybe a limitation of time period would be given to some "..but not sure util tomorrow.

Sucks !!!

Limitation of time period as in ?

[AbeysinghE]

Guys here we go the latest update,

Tax revision on imported vehicles

Standard cars below 1000 cc go up from 95% to 120%

1000 cc to 1600 cc from 119% to 128%

Trishaws 38% to 50%

hybrid cars from 38% to in between 50% to 100%

Edited April 25, 2011 by AbeysinghE

[RWD]

these are pretty significant increases. must be trying to increase government revenue with the massive influx of new vehicles in the market. though i wonder how this will now affect demand.

[AbeysinghE]

these are pretty significant increases. must be trying to increase government revenue with the massive influx of new vehicles in the market. though i wonder how this will now affect demand.

The government can make a really good tax income by increasing the tax for liquor If the duty is so high the demand of the vehicles will be decreased. But how about the liquor? will there be any fall of sales?? i guess no

[Gayan Weerakoon]

Basically the government has increased taxes on the "Common mans" cars.......

[hyacc]

Tax revised on imported Petrol and Diesel vehicles

Monday, 25 April 2011 14:42

Taxes on imported Petrol and Diesel vehicles below 1600 cc and three-wheelers have been increased.

The revision will also apply to Hybrid vehicles.

The government has also reduced the used period for reconditioned cars from three and half years to two years.

-sundaytimes.lk

Edited April 25, 2011 by hyacc

[jaga]

The government can make a really good tax income by increasing the tax for liquor If the duty is so high the demand of the vehicles will be decreased. But how about the liquor? will there be any fall of sales?? i guess no

Not for liquor oh my god. Funny thing is , above 1600 lt are not effected.

[AbeysinghE]

Not for liquor oh my god. Funny thing is , above 1600 lt are not effected.

Not surprising i suppose.The tax revision is only applicable for the people who goes for average vehicles.Not for luxury ones.

[AfzGTR]

this is the stupidest thing ever!!! they are discouraging hybrids!! ...they are eco friendly man!!

[zerocool]

Edited April 25, 2011 by zerocool

[hyacc]

Tax increased on petrol vehicles

Monday, 25 April 2011 14:33

The excise duty on hybrid vehicles and petrol vehicles will see sharp increases, Customs and Treasury officials said.

Hybrid cars with engines below engine capacity1600 CC will see an imposition of 8 per-cent excise duty, according to Deputy Director General of Customs Ajantha Dias. For hybrid cars with engines above 1600 cubic centimeters excise duty will be increased to 24%.

Meanwhile on hybrids between 2000 to 3000 CC excise duty will go up close to 75% and above 3,000 CC to 100%.

Earlier, there was no excise duty on hybrid vehicles but only 15% tax and a 12% VAT. In the past two months about 3,000 hybrids have been imported into the country.

Meanwhile the excise duty on petrol vehicles less than 1000 CC will see an increase of about 38 per-cent from the previous rate between 23% while those between 1000 and 1500 CC will see an increase in excise duties of 43%. (Dianne Silva)

-dm

[gpmac]

Not surprising i suppose.The tax revision is only applicable for the people who goes for average vehicles.Not for luxury ones.

the taxes on vehicles that are over 2000cc is already high

the additional taxes on hybrid vehicles was predictable, to many people were buying them just cuss they were cheap unlike in other places in the world

it makes more sense to price hybrid cars and normal cars at the same rate so that the environmentally conscious can purchase them with the added benefit of the fuel saving, hopefully the amount of people just buying hybrids cuss they are cheap will decrease after the tax increase

[Crosswind]

How about diesel vehicles? Is this only applicable for hybrids and petrols?

[Busooly]

It's really hard to accept man, mine is suppose to deliver this month end it's in the port........

[charitha19]

right royally fuc*ed up neda?.....

[nexus]

The government can make a really good tax income by increasing the tax for liquor If the duty is so high the demand of the vehicles will be decreased. But how about the liquor? will there be any fall of sales?? i guess no

that's a good idea but it not gonna work here.

[MkX]

too bad one of my friend's brother did not cleared his Vits last weeks because its not the same vehicle they showed before import, but same model and same features different colour. And the other car is due to arrive in two weeks. .. I asked him to go and get the previous car without waiting two weeks

Edited April 25, 2011 by MkX

[VVTi]

Sri Lanka has raised import duties on several categories of petrol-engined cars and three wheelers with steeper increases seen in larger hybrid vehicles, which had exceptionally low taxes earlier, officials said.

A senior Treasury official said there were revisions on several categories of vehicles.

On petrol cars with standard engines with capacities below 1,000 cubic centimeters the effective total tax rate will go up from the current 95 percent to 120 percent.

Between 1000 to 1,600 cc the effective rate will go up from 119 to 128 percent. On three wheelers the effective rate will go up from 38 percent to 50 percent.

On hybrid cars with engines below 2,000 cubic centimeters total duties will go up from 38 percent close to 50 percent.

Deputy director general of customs Ajantha Dias said an excise duty was raised by 8.0 percent on small hybrids but it will take up the total duties by a larger amount when added together.

On hybrids between 2,000 to 3000 cc duty will go up close to 75 percent and above 3,000 cc to 100 percent.

In the past two months about 3,000 hybrids have been imported to the country, Dias said.

At the current rates even the large hybrids are taxed at a lower rate than smaller petrol cars.

Parpet wall knocked down neda?

[MkX]

Parpet wall knocked down neda?

Feel sorry for the average guys who now have to pay extra 3,4 laks suddenly for their imported or advance paid vehicles. If government really thinks about the citizen they should not have these policy changes in middle of the year and wait till the budgets.

Bit OT: Not taking about politics, but does any private sector workers here knows about how this proposed pension scheme for pvt sector works. I read it in other website.. its a disaster for me.. my road trip plan (if i lived till 55) needs to be canceled.

[kmeeg]

This gvnmnt a$% holes really dnt care abt people.. I have payed an advance and taken the loan according to the salary. now suddenly these a#$ holes have increase taxed and now in trouble finding the balance. Have to go begging in pettah oh something..

[Rohnd]

The Country had pumped enough cars for a 'Magic of Asia' during the last year. What is the purpose of extending the Tax reliefs on vehicles, when the elections are over for some time too ?.

[vishkid]

Bit OT: Not taking about politics, but does any private sector workers here knows about how this proposed pension scheme for pvt sector works. I read it in other website.. its a disaster for me.. my road trip plan (if i lived till 55) needs to be canceled.

Yeah it's OT but a valid concern for nearly all of us Private Sector workers. We at office went through the draft bill and estimated that there is about 50% chance that you will be able to claim your money fully back. Government is basically trying to pilfer our wages to create the desperately needed cashflow. I for one will fully support (financially and otherwise) any court action to make this scheme fully voluntarily.

Sorry for the OT rant!

... oh and good bye Axela - registered or unregistered, now will quickly be out of my reach!

[rez]

This gvnmnt a$% holes really dnt care abt people.. I have payed an advance and taken the loan according to the salary. now suddenly these a#$ holes have increase taxed and now in trouble finding the balance. Have to go begging in pettah oh something..

It's a real Tsunami for me !!! When the car is at the docks waiting to be cleared today....now exceeds my budget and trying to find the extra cash to clear the mess....no words to shout....How come these morons can do it suddenly !!! Guess they have already filled their ass's with gold !!!

:

[VVTi]

Well, some here will come out running now 'I TOLD YOU SO'. In their defense they did say that the honeymoon might end early 2011. So I guess those who bought early were the lucky ones. Their investments will now grow.

[rangerover]

I'm keen to how the two year limit will be imposed on vehicles already being ordered. Based on previous policies adapted, they might exempt this new law for vehicles that have already being shipped and issued B/L's for or opened L/C's for. Any feedback on this?

As a rule of thumb i stick to the second hand market. More predictable. But thats because i cant afford brand new euro's or the risk of hasty government policies at the moment!