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"Blue" Permit /Importation of Vehicles by Foreign worker


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Hello, 

Do you know about  the Import license scheme for Foreign exchange earning Sri Lankans?

So called "blue permit",which disappeared about 12 years ago.

I see some upto-date info on the Gov.lk website under

100 - Importation of Vehicles under the Foreign Exchange earned

http://www.imexport.gov.lk/index.php?option=com_content&view=article&id=43&Itemid=164&lang=en#issuance-of-license-7

Are there any tax benefits(it says 4% CIF for upto 5 years)?

Is it just a non-existent scheme,or possible if you can "motivate" some people there, or normally possible if the criteria is fullfilled?

Anyone you know has tried recently?

Edited by ajm
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They stopped this and then they started it then stopped it..I dunno if they are giving it again.

I am sure I made a post on it somewhere in the forum. When we brought down our car the stipulations were as folllows:

- The value of the car cannot exceed 20% of the value of foreign exchange you would have sent to SL

- If you owned the car for 1 year abroad then the car can be up to 5 years old and if you owned it for more than that the car can be up to 10 years of age.

- Standard taxes and rates apply

There used to be a benefit but it died off a long time ago. 

When the scheme was first started valuation of the vehicle for taxing was done based on a depreciation table. Because this permit allowed you to bring cars older than the standard age restrictions, the valuation of the vehicle was lower and thus the taxes paid were lower (if a brand new car is 10,000USD and after 5 years, depreciation is 50%; then the car is valued at 5000USD and taxes applied at 5000USD). However, with the depreciation table being abandoned the benefits are completely lost. So you end up paying the same amount of taxes for a brand new car an old car. In fact you will be able to find cheaper and better got permit cars. The only time the permit now makes sense is if you are bringing down one heck of a unique ride.

The 4% you are asking about is the price of the permit for a car up to 5 years of age.

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11 hours ago, iRage said:

and if you owned it for more than that the car can be up to 10 years of age

thanks for your input,it is also what I know from when I tried many years ago.

 

now it seems they have reduced the maximum age to 7years,that means it's a new thing which could still be alive?? @crosswind the govt procedures expert

Edited by ajm
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16 hours ago, ajm said:

 

thanks for your input,it is also what I know from when I tried many years ago.

 

now it seems they have reduced the maximum age to 7years,that means it's a new thing which could still be alive?? @crosswind the govt procedures expert

Well...maybe they revamped it. But as long as the tax rates are the same and the rational for calculating taxes are also the same..the benefit is really not there unless you are bringing something special...interestingly none of the governments (past and present) have been able to come up with a successful vehicle import scheme for foreign workers. First it was based on the passport (which was a bit fair for all kinds of employees abroad), then all kinds of weird permits that just came and went.

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On ‎2018‎-‎01‎-‎26 at 3:27 AM, iRage said:

They stopped this and then they started it then stopped it..I dunno if they are giving it again.

I am sure I made a post on it somewhere in the forum. When we brought down our car the stipulations were as folllows:

- The value of the car cannot exceed 20% of the value of foreign exchange you would have sent to SL

- If you owned the car for 1 year abroad then the car can be up to 5 years old and if you owned it for more than that the car can be up to 10 years of age.

- Standard taxes and rates apply

There used to be a benefit but it died off a long time ago. 

When the scheme was first started valuation of the vehicle for taxing was done based on a depreciation table. Because this permit allowed you to bring cars older than the standard age restrictions, the valuation of the vehicle was lower and thus the taxes paid were lower (if a brand new car is 10,000USD and after 5 years, depreciation is 50%; then the car is valued at 5000USD and taxes applied at 5000USD). However, with the depreciation table being abandoned the benefits are completely lost. So you end up paying the same amount of taxes for a brand new car an old car. In fact you will be able to find cheaper and better got permit cars. The only time the permit now makes sense is if you are bringing down one heck of a unique ride.

The 4% you are asking about is the price of the permit for a car up to 5 years of age.

so in the end you have to pay same tax for an older car and 4% CIF on top of that for a permit? Brilliant!

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  • 2 years later...
14 hours ago, Askar said:

hi if any one know clear information above, please help me , actually  i plan to send a vehicle to my wife as a gift, i'm here in Dubai for last 15 years....

The gift permits have not been a round for along long time. I think they are still not available. You better check with the Customs Department. If you are planning to send the car that you are using whilst working abroad..then in order to do that you need to show that you are leaving Dubai for good and returning to SL.

Either way....it really is not worth to send a car on these permits anymore. The taxes are high (as same as a brand new car) because of the CC based taxation. When you factor in the cost of Left Hand to RIght Hand drive conversion (if applicable); you could find a car locally for the same price or less. Only time bringing the car over makes sense is when the car is a very very very special and rare car.

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  • 6 months later...

So that mean even if the car is under my name for 5 years period we cannot bring back to Sri lanka with reducing some of the Tax(Not expecting full Tax but up to some fair amount)

Edited by Nuwan Epa
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2 hours ago, Nuwan Epa said:

So that mean even if the car is under my name for 5 years period we cannot bring back to Sri lanka with reducing some of the Tax(Not expecting full Tax but up to some fair amount)

under the current taxing scheme yes...you cannot get any reduction in taxes. So if you bring down your 10 year old Corolla with a 1500cc engine you used abroad or if you import a brand new Corolla with a 1600cc engine you will pay the same amount of taxes. Only break you might get is luxury tax may or may not apply depending on the cost/value of the car.

The only savings you would make would be on the body price of the car. So it really is not worth bringing down your foreign used car unless it something very very very very special and you can afford it.

Anyway....this is not something to worry about as this scheme was suspended a few years ago. So you cannot get these permits now (legally atleast)

NOTE : In the past the scheme was helpful for these individuals because taxes were applied on a depreciation value of the car (i.e. they calculated the value of the car based on the depreciated value of the car, eg...a 5 year car would be about 70% of the value of a brand new car...a 10 year olf car about 40%..etc...).

Edited by iRage
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