Budget - Impact On Vehicle Prices

[isam]

@ crosswind - exactly to sum up the situation, I do frankly understand the curr difficult time.hence no strict or resist the necessary temporary measures. The reply was to sudden malicious claims about public sector. Rather stereotyping.That's absurd.

No, the allegations are not 'malicious'. They are with ground.

The problem is stigmatizing every sector alike. There are sectors in government service, despite being severely resource constricted, performing the best they could being quite effective (i.e. - hospitals, armed forces).

But then again... there are sectors that don't. They earn a bad rapport for everyone.

[kush]

Last permit scheme started in March 2007, most of them got the second vehicle in 2012, next will be due 2017 by that time there will be a new scheme as most of the policy making govt. servants (treasury / central bank/ ministry secretaries ) will be yarning for them. GMOA will be up in arms.

[priyanka]

Are we missing any other information? How can a Doctor own a vehicle worth 3 Mil (approx) with only the salary paid from the governmnet hospital? If the answer is inherited money, then why bother about permits?

No the 3 million worth aqua belong to my wife who is also a doctor. Funds from BOC personal loan, 2.5 million

I myself bought a Montero V 98 for my own permit, which cost me 7.3 million

Funds by selling the previous V78 montero, which was my 4th vehicle ( bought by selling the hilux KUN 25R plus a personal loan from NDB )

Yes, it is true, I began with some inherited money

I m not talking about my own permit here.

In fact most doctors were able to buy something for their permits

It s regarding all the government servants.

Edited November 23, 2015 by priyanka

[priyanka]

Previous government restricted the permit usage by increasing the customs FOB values.

So PRADO,DISCOVERY,Fully loaded MONTERO, and most other luxury cars were not allowed to bring in.

But the new government, reduced those FOB values in march this year.

So there was a huge influx of luxury vehicles, especially PRADOs, all of you would have noticed

And now the same government is saying that the foreign exchange is limited, so the number of cars should be limited.

Edited November 23, 2015 by priyanka

[isam]

Previous government restricted the permit usage by increasing the customs FOB values.

So PRADO,DISCOVERY,Fully loaded MONTERO, and most other luxury cars were not allowed to bring in.

But the new government, reduced those FOB values in march this year.

So there was a huge influx of luxury vehicles, especially PRADOs, all of you would have noticed

And now the same government is saying that the foreign exchange is limited, so the number of cars should be limited.

'

Welcome to SL politics! In case you have never heard before, 'This is a Land Like No Other!'

[H.C]

The system is a collapsed one. There is nothing to collapse even further.

Mate, if you consider our health system, its the best one in the south asia and most of the health indexes are more less comparable with western world figures. ( Maternal mortality rate, Infant mortality rate, Etc) Even some countries take our system as a role model. So don't just bash everything in the government sector as inefficient.

[Pericles]

People who work fro private organisation do not take all the money home, they do pay tax

Tax ? How much?

it's only the workers who earn more than 200,000 per month are asked to pay tax now.

None of the government servants, except very few like consultant doctors, will have to pay tax.

Most government officers holding top posts even earn less than 100,000.

Paying 15,000 as tax while earning over 300,000 is much different to earning some 70,000 and not paying tax.

People who work fro private organisation do not take all the money home, they do pay tax

Tax ? How much?

it's only the workers who earn more than 200,000 per month are asked to pay tax now.

None of the government servants, except very few like consultant doctors, will have to pay tax.

Most government officers holding top posts even earn less than 100,000.

Paying 15,000 as tax while earning over 300,000 is much different to earning some 70,000 and not paying tax.

When was that introduced? I have been out of the private sector for a year now, but I had PAYE tax on my payslips even when I was making under 50k. And there is that percentage that went to EPF that the previous govt was playing around with, not sure it even exists any more.

[isam]

Mate, if you consider our health system, its the best one in the south asia and most of the health indexes are more less comparable with western world figures. ( Maternal mortality rate, Infant mortality rate, Etc) Even some countries take our system as a role model. So don't just bash everything in the government sector as inefficient.

Yep! Agree... err... Haven't I said that myself already...

No, the allegations are not 'malicious'. They are with ground.

The problem is stigmatizing every sector alike. There are sectors in government service, despite being severely resource constricted, performing the best they could being quite effective (i.e. - hospitals, armed forces).

But then again... there are sectors that don't. They earn a bad rapport for everyone.

[B2Spirit]

Strange country this with strange unions.

GMOA is up in arms threatening strikes when the vehicle permits are cancelled and pulls every strings imaginable against private medical degrees.

But when have they ever said a word about the doctors jumping ship and migrating to other countries at the first available chance to have a better life.

After all that's quite a lot of parippu and halmasso tax money going down the drain so that Australia can reap the benefits of our investment.

I am not against anyone migrating to have a better life, that is their choice. But at least we need to make them payback our damn investment before they bugger out.

Edited November 24, 2015 by B2Spirit

[terrabytetango]

I believe this thread has now lost the plot, and is better suited for elakiri.

[isam]

Strange country this with strange unions.

GMOA is up in arms threatening strikes when the vehicle permits are cancelled and pulls every strings imaginable against private medical degrees.

But when have they ever said a word about the doctors jumping ship and migrating to other countries at the first available chance to have a better life.

After all that's quite a lot of parippu and halmasso tax money going down the drain so that Australia can reap the benefits of our investment.

I am not against anyone migrating to have a better life, that is their choice. But at least we need to make them payback our damn investment before they bugger out.

I don't think it would work that way. The proper approach would be to make a conducive environment to retain the professionals in the country. But, in order to do that we should have rulers who understand the value of knowledge and knowledge workers which Kudu, kasippu mudalali and common thugs do not! In the end, people should be blamed for sending them to the parliament!

[matroska]

[kusumsiri]

Yes. The thread topic is "Budget - Impact On Vehicle Prices".

[rija]

At least shall we discuss what would happen to the vehicle prices as a result of permit cancellation too ? We know what happened to the Montero Sport prices when permit holders imported those in hope of selling them with good profit margin rather than selling the permit.

[Magnum]

At least shall we discuss what would happen to the vehicle prices as a result of permit cancellation too ? We know what happened to the Montero Sport prices when permit holders imported those in hope of selling them with good profit margin rather than selling the permit.

I highly doubt they would go up, I don't find people talking about those permit vehicles much now.

[rija]

Isam--

Nope. None of the tax payers get/got the permits. Its only the non-tax paying government workers who got the tax exemption on vehicles. The tax-payers had/have to pay tax when they import vehicles.

Some tax payers get tax exemption...I met an engineer working in a reputed private company he said that they get 25% of tax concession. Earlier it was for every five years...then it was reduced to once in a life time. When it came to the permit holding government officers it did not matter whether they were paying tax or not.

And I just found it was discussed here earlier.

http://forum.autolanka.com/topic/8725-income-tax-payers-permit/

Edited November 24, 2015 by rija

[rija]

rija, on 24 Nov 2015 - 18:50, said:

At least shall we discuss what would happen to the vehicle prices as a result of permit cancellation too ? We know what happened to the Montero Sport prices when permit holders imported those in hope of selling them with good profit margin rather than selling the permit.

Magnum

I highly doubt they would go up, I don't find people talking about those permit vehicles much now.

Yeah.. You may be correct. Anyway these days there was not significant amount of permit issuing. It usually comes as a bunch in five years....that is the time permits might affect the vehicle price.

[KingSasanka]

How about the guys who work overseas and remit their hard earned foreign money?

What do they get in return for their service to the country?

Not even the right to cast their vote.

I still say payment structures should be based on Per Capita Income of the country only.

[B2Spirit]

Permits suspended from 21st November.

LCs for those obtained on or before 20th November can be opened before 31dec.

Finance Ministry

[isam]

Some tax payers get tax exemption...I met an engineer working in a reputed private company he said that they get 25% of tax concession. Earlier it was for every five years...then it was reduced to once in a life time. When it came to the permit holding government officers it did not matter whether they were paying tax or not.

And I just found it was discussed here earlier.

http://forum.autolanka.com/topic/8725-income-tax-payers-permit/

I stand corrected. Yes there seems to be a concession of 25% for Tax payers who contribute at least 250K for either 5 or 10 consecutive years. Application form from IR has more details: http://www.ird.gov.lk/en/publications/Unit%20Profiles_Tax%20Payer%20Service%20Unit/Form_App_Vehicle_Permit.pdf

But how does that measure against someone in the government getting permits of much higher percentages, without paying any tax?

P.S. I' not against any hard working government servant getting a permit. But it is unfair to leave out those who basically pull the weight of the economy.

The latest development is:

http://www.ft.lk/article/475349/CMTA-urges-Finance-Ministry-to-reconsider-issuance-of-vehicle-import-permits-to-taxpayers

Edited November 24, 2015 by isam

[isam]

How about the guys who work overseas and remit their hard earned foreign money?

What do they get in return for their service to the country?

Not even the right to cast their vote.

I still say payment structures should be based on Per Capita Income of the country only.

There was a permit system (Blue Permit or something?) which allowed the foreign workers to import 5 to 10 year old vehicles once every 5 years. Then it was cut down to once in a lifetime. And then I lost track of the legislation...

[trish_auto]

2016 budget proposals have revised the taxation on vehicles. Below are extracts from the budget.

All the permits has also been cancelled.

What impact will have these on the vehicle prices ?

"Excise duty to 2.5 percent for the vehicles which are run entirely on Solar, Hydrogen

or Helium" .....may be in 2050 in Sri Lanka..what a joke by these people..

get me some grass to eat for listening this budget speech,

[B2Spirit]

The Circular mentioned rates like 90%, 150% etc.

But on other sites the actual tax % is shown as 104.5% and 172.5% for the same above categories.

Does this mean VAT n maybe NBT is not included in the circular numbers ?

[Magnum]

The Circular mentioned rates like 90%, 150% etc.

But on other sites the actual tax % is shown as 104.5% and 172.5% for the same above categories.

Does this mean VAT n maybe NBT is not included in the circular numbers ?

Theres no VAT for vehicle import

[kchemist]

No the 3 million worth aqua belong to my wife who is also a doctor. Funds from BOC personal loan, 2.5 million

I myself bought a Montero V 98 for my own permit, which cost me 7.3 million

Funds by selling the previous V78 montero, which was my 4th vehicle ( bought by selling the hilux KUN 25R plus a personal loan from NDB )

Yes, it is true, I began with some inherited money

I m not talking about my own permit here.

In fact most doctors were able to buy something for their permits

It s regarding all the government servants.

Well, this is my first comment and my apologies if I m breaking any rules or feels like I m coming at hard on people with permits. I have an opinion on this matter I thought of sharing that here. Yes, I think cancellation of permits is one of the good thing done by this budget. If govt was giving permits based on education level, then this should be given to private sector too. For ex-majority of Eng, Accountants, Lawyers, Scientists don't get this privilege. Some of their salaries are lower than govt employees. Salary of a private employee depends on many factors (i.e. company, seniority etc etc.). Since this is not practical for the country it is better not to have this method.

Doctors bringing another argument that is they are underpaid and they take US, Canada, the UK for example. But they never take the examples of countries like SL (i.e. India, Pakistan, BD, etc etc). Doctors in those countries work as much as doctors in SL maybe even more, but they don't have such privileges. And doctors in most countries (if not all) have spend money on their medical degree. I m all in for increasing govt salaries (specially those educated) but answer to that is not permit.

Another unfair thing is they get these permits every five years. If they want a car they should only get 1 for entire life because they can simply fund their next car by selling the current car. Which they eventually do and make a handy profit and import a new car for the same money that they sold the five years old car.

I saw there is a proposal that govt is going to give 50k more per month for the personal who uses their own car. So that is a good step. So it will increase their salary and also they will get 3 mil more during 5 years, and that is plenty more than they would be getting through a permit.

Another unfair thing with this permit strategy is how they treat foreign expats. They are not given any duty concession even though they bring foreign currency. IMO govt should give a certain percentage of their remittance back to them as a duty free (For ex person remits $ 100k will get a $20k allowance).

By making such a comment I might have made lots of enemies in this forum but this is how I feel about this matter.