Rules On Importing A 4X4 From Uk For Expats 2015 Budget

[Nara.danu]

Hi guys,

I am hoping someone can help. I am a Srilankan working in UK and looking to send a Defender or a Discovery to Sri Lanka.

I understand that there are some changes to importation rules under 2015 budget (ie. 60% tax facility). Would someone be kind enough to explain exactly how this works?

Also I don't currently own a Defender or a Discovery, but looking to purchase one soon, with the hope of sending it to Sri Lanka. I was also wondering whether the vehicle can be older than 10 years if I am using it currently?

Thanks guys

Dan

[Nara.danu]

Hi guys,

I am hoping someone can help. I am a Srilankan working in UK and looking to send a Defender or a Discovery to Sri Lanka.

I understand that there are some changes to importation rules under 2015 budget (ie. 60% tax facility). Would someone be kind enough to explain exactly how this works?

Also I don't currently own a Defender or a Discovery, but looking to purchase one soon, with the hope of sending it to Sri Lanka. I was also wondering whether the vehicle can be older than 10 years if I am using it currently?

Thanks guys

Dan

[iRage]

Hi guys,

I am hoping someone can help. I am a Srilankan working in UK and looking to send a Defender or a Discovery to Sri Lanka.

I understand that there are some changes to importation rules under 2015 budget (ie. 60% tax facility). Would someone be kind enough to explain exactly how this works?

Also I don't currently own a Defender or a Discovery, but looking to purchase one soon, with the hope of sending it to Sri Lanka. I was also wondering whether the vehicle can be older than 10 years if I am using it currently?

Thanks guys

Dan

The previous regime mentioned a 60% duty on cars for expats (I believe for Sri Lankans who are working abroad who haven't taken up dual citizenship or PR in those countries) during there mini budget a month or two before the election; but I don't think it ever came in to being. So standard rates and rules should apply to you unless it is a car you have been using there. Best would be for you to just call "them" up or have someone you know go over and ask ?

[Nara.danu]

Thanks for the reply.

I am not currently using one, but i am in no rush, so if the price is right ie. Low duty on importation i will be happy to buy one and wait for a year.

What kind of tax conxconcessions would i get if it is a vehicle i have used for a year or so?

I am really confused. If the vehicle is Rs. 4m and shipping and insurance is rs 5 lks, how much tax would i be looking to pay?

Thanks again.

Ps. I will get in touch with them first thing Monday

[iRage]

Thanks for the reply.

I am not currently using one, but i am in no rush, so if the price is right ie. Low duty on importation i will be happy to buy one and wait for a year.

What kind of tax conxconcessions would i get if it is a vehicle i have used for a year or so?

I am really confused. If the vehicle is Rs. 4m and shipping and insurance is rs 5 lks, how much tax would i be looking to pay?

Thanks again.

Ps. I will get in touch with them first thing Monday

If you have used a car in the county you are working and sent 5 times as the value of the car in foreign exchange to SL there used to be a scheme where you can get a permit to import a car older than the normal 2 years. If you owned it for 1-3 years you can bring down a car up to 5 years of age more than 3 years of ownership the car can be up to 10 years of age. The duty rates were the same as a normal import (thus no duty concessions). The only saving/concession you get is if your car is older than 2 years then the depreciation would lessen the fiscal value of the duty paid . So buying a car and using it for just one year you don't gain anything

On the hand with all these permit cars being imported and sold you might be able to get hold of one of those cars cheaper than what it would cost you to bring down the car you were using. So to reap the benefits of it you need to bring down a car which typically is not imported under these government officers, doctors, etc... permits (on top of it being older than 2 years).

HOWEVER...the above is what it used to be. With the new duty charging mechanisms and abolishing of the depreciation tables,etc...of the new govt. I have no idea how the above works anymore or even if it is still available. So call again and check (and post what you find out at the end ?)

[Nara.danu]

Thanks again for the reply buddy...

I will post my findings at somepoint next week ☺

[Hoonigan]

Did they abolish the depreciation table entirely? Last I remember, they revised it so that the percentages of depreciation were reduced so that the taxable value would be higher.

What iRage described was what is known as the "blue permit". There are some detailed documentation to be done to obtain the permit so you will have to contact import control to get this going. It might end up being cheaper and/or less trouble to buy a Defender locally but do the numbers first.

[iRage]

Did they abolish the depreciation table entirely? Last I remember, they revised it so that the percentages of depreciation were reduced so that the taxable value would be higher.

What iRage described was what is known as the "blue permit". There are some detailed documentation to be done to obtain the permit so you will have to contact import control to get this going. It might end up being cheaper and/or less trouble to buy a Defender locally but do the numbers first.

No idea....didn't they ? I remember the previous govt. changing the rates last year; then the new govt said they were getting rid of it during their mini budget this year...to be honest I have no idea what ended up happening. Even if the depreciation table was abolished I guess there is some depr. table out there they might use in cases like blue permits or diplomats' or other duty exempt expats' cars being transferred over to locals

[Hoonigan]

No idea....didn't they ? I remember the previous govt. changing the rates last year; then the new govt said they were getting rid of it during their mini budget this year...to be honest I have no idea what ended up happening. Even if the depreciation table was abolished I guess there is some depr. table out there they might use in cases like blue permits or diplomats' or other duty exempt expats' cars being transferred over to locals

Not sure really. The last I remember was the revision, which would reduce the benefit of a blue permit even further. Also, I feel that the situation is a bit too volatile to commit to the process of importing a vehicle right now. Who knows what will happen within the next couple of months.

[The Don]

Yeah best await the full budget after the election as the prevailing uncertainity is not helpful in terms of making a purchase decision.

And in SL, the government has not always provided relief for people who are affected by a sudden rule change.