Mini Budget Today 29Th January

[The Don]

Governments do not increase tax for no reason. They are unpopular decisions and sometimes costs them votes (depending on who is hit).

We have a massive national debt issue, and I really cannot see how we can afford any tax cuts (unless done for short term political reasons). At the moment we are servicing our debts with more loans.

We also have an issue with our foreign currency reserve, which is essential to be able to import essential goods, and keep the rupee at a decent figure to control inflation of imports. Thus we have to control imports.

With regards to the new government, we have to accept they cannot implement meaningful changes before the next election. Its frankly impossible, as it takes a very long time, and doing it too quickly puts the economy at risk and makes life very painful for its citizens, particularly the poor. To balance the budget, they would have to find savings and make cuts and we will all have to share in the pain in the short term.

The alternative is catastrophic. I think the term used these days is "Greek Tragedy"

So I do not expect any cuts in vehicle duty. Even if there are cuts, it will probably be for vehicles around the 1L mark which the previous government rather unfairly increased taxes, as that hit the emerging middle class, which is the wrong segment to hit if the country wants growth (and limit brain drain).

[zeem35]

5% going up Afaik

Just to add some spice for the speculation

[VVTi]

Guys, price of sardines have come down...

Sugar and coriander also...yayyyy!!!

So now you can drive your car to Co-)p city and buy above mentioned items and increase the overall BHP in the cars...

[carbuddy]

Hybrid car price may increase around 10%. If so Vezel, Prius may cost more 4-5 laks.

[Crosswind]

umbalakada machan umbalakada

eat umbalakada and drink kottamalli.

yaaay...

[VVTi]

Hybrid car price may increase around 10%. If so Vezel, Prius may cost more 4-5 laks.

Sustagen prices have come down too... now you can drink more Sustagen and not worry about car prices.

You will need koththamalli anyway when the car tax gets 'revised' in the next budget...

Hope the fuel saving from your hybrids are safe in FD...

Edited January 29, 2015 by VVTi

[MoneyMaker]

Cars 1000cc Tax to be reduced by 15% and Hybrid taxes to be brought down further

[Crosswind]

This is more important for the average sri lankan who works his ass off to feed his family, than the price of hybrid cars

[VVTi]

And koththamalli tax down, along with sugar also.

[peugeot407]

Hybrid car price may increase around 10%. If so Vezel, Prius may cost more 4-5 laks.

how could Hybrid car prices increase since since there is no change in the tax applied to Hybrid vehicles

[VVTi]

This is more important for the average sri lankan who works his ass off to feed his family, than the price of hybrid cars

The hybrid drivers will not be buying any of these machang... they are special...

[carbuddy]

how could Hybrid car prices increase since since there is no change in the tax applied to Hybrid vehicles

http://www.adaderana.lk/biz/%E0%B6%85%E0%B6%AD%E0%B7%94%E0%B6%BB%E0%B7%94-%E0%B6%85%E0%B6%BA%E0%B7%80%E0%B7%90%E0%B6%BA%E0%B7%99%E0%B6%B1%E0%B7%8A-%E0%B6%9A%E0%B7%94%E0%B6%A9%E0%B7%8F-%E0%B6%B8%E0%B7%9D%E0%B6%A7%E0%B6%BB/

[Crosswind]

... and we finally get 6% of GDP for education and 3% of GDP for healthcare. This is the right thing to do and I hope its sustainable.

As for those hybrid car buyers, note that taxes of zero mileage cars won't change. If you buy a zero mileage car or a 2-year old hybrid, the taxes will remain same so don't get your panties in a twist. Be happy that the government is focusing on improving healthcare and education while reducing the cost of living of the masses...

and if u r not sure what 'masses' are... they take the bus/train to work. they eat basic meals and go to government hospitals when they are sick... and no... they don't drive hybrid cars... there are millions of those people in this country.. be happy for them.

Edited January 29, 2015 by Crosswind

[Davy]

http://forum.autolanka.com/topic/16585-vehicle-duty-of-upcoming-interim-budget/?hl=%2Binterim+%2Bbudget

[Davy]

This is more important for the average sri lankan who works his ass off to feed his family, than the price of hybrid cars

I wonder what other types of chilli powder are there apart from "powdered chilli powder".

[Crosswind]

I wonder what other types of chilli powder are there apart from "powdered chilli powder".

kaali miris

apparently taxes are not reduced for that

[Ruslan]

kaali miris

apparently taxes are not reduced for that

Dissapointed

[Davy]

kaali miris

apparently taxes are not reduced for that

Yeah, quite clear when they've said "powder" twice.

*I was trying to be funny Crosswind. Come on!

I also heard that state owned vehicles will be sold in public auctions. Those abandoned Land Rovers and BMWs will finally find homes. And that it will be possible to import busses (for tourism purposes if I heard correctly) where the YOM is up to 10 years old. (it's currently possible to import only where YOM <=5).

[Crosswind]

Yeah, quite clear when they've said "powder" twice.

*I was trying to be funny Crosswind. Come on!

ahh... didn't see the word powder twice...

[Galle]

The customs duty will decrease by around 15 per cent for vehicles with engines below 1000 CC,
and taxes imposed on hybrid vehicles also will be reduced, Minister Ravi Karunanayake said.

http://adaderana.lk/news/29617/important-tax-on-vehicles-below-1000cc-reduced

[The Don]

The customs duty will decrease by around 15 per cent for vehicles with engines below 1000 CC,

and taxes imposed on hybrid vehicles also will be reduced, Minister Ravi Karunanayake said.

http://adaderana.lk/news/29617/important-tax-on-vehicles-below-1000cc-reduced

I predicted this if you read above Its simply undoing an unjust change that hit the lower middle class unnecessarily (I'm talking about vehicles with engine capacity less than 1000cc).

[The Don]

Have merged the budget threads as there was no need for two

[Crosswind]

The customs duty will decrease by around 15 per cent for vehicles with engines below 1000 CC,

and taxes imposed on hybrid vehicles also will be reduced, Minister Ravi Karunanayake said.

http://adaderana.lk/news/29617/important-tax-on-vehicles-below-1000cc-reduced

I don't think Derana reporter listened to the budget speech carefully.

What Ravi K said was there is a disparity in the taxation scheme between hybrid and non-hybrid carsand as a remedial measure, the depreciation table will be invalidated for hybrid cars. I am not sure how this will overcome the disparity. What it means is that taxes of a hybrid vehicle will remain same irrespective of whether it is 1 day old or 2 years old when exported from Japan (or wherever it is used). Thus, the prices of 2-year old recon hybrids will increase but zero-mileage hybrids will remain same.

Edited January 29, 2015 by Crosswind

[sathyajithj99]

When reducing the prices of sustagen, why couldnt they reduce the price of redbull? huh

[CREATIVE]

According to finance ministry site, present depreciating table is off for all vehicles, and hybrid taxes will increase tonight...

Revision of Vehicle Taxes
8.17 In order to encourage low income families to purchase a motor car to improve their
living standards, I propose to reduce the taxes applicable on the motor cars with engine
capacity less than 1,000 cc by around 15%. 28
8.18 The present tax structure on motor vehicles has created an unhealthy disparity between
hybrid and normal motor cars. In order to rectify this anomaly, I propose to revise the
excise taxes applicable on hybrid vehicles. These changes will be implemented from mid
night today.
8.19 The present practice of depreciating the value of vehicles at the point of import has
created many mal-practices, including under valuation of vehicles and changing the date
of registration. This has led to a significant amount of revenue loss to the government.
As a solution for this, I propose to remove the depreciation Table with effect from mid

night today.