Budget 2019

[CNX]

Edited March 5, 2019 by CNX

[ajm]

so Luxury tax on CIF value will be imposed in addition to the Tax on Engine Capacity or whichever is higher to be imposed?

[kush]

11 minutes ago, ajm said:

so Luxury tax on CIF value will be imposed in addition to the Tax on Engine Capacity or whichever is higher to be imposed?

Looks as on top of the engine capacity tax, 100% on CIF for petrol cars

Guess we will all be driving Allions / Axios

[GayanR]

3 hours ago, kush said:

Looks as on top of the engine capacity tax, 100% on CIF for petrol cars

Guess we will all be driving Allions / Axios

I can't wait to see the 121 guys

[iRage]

3 hours ago, kush said:

Looks as on top of the engine capacity tax, 100% on CIF for petrol cars

Guess we will all be driving Allions / Axios

Even Allions and Axios would get luxury tax...3.5mil CIF means about 2.2mil yen....for that price you are looking at ones that barely meet the age restriction and even then probably base ones. Same fate for all other models as well in the segment...and the Hybrids...so in essence anything and everything other than small hatches/MPVs and Kei cars will get a luxury tax.

 

 

[Praveen98]

the luxury tax is on the amount which exceeds 3.5 million in the case of petrol non hybrid vehicle  so say the cost of the car is 4.0 million.The tax free threshold is exceed by 5 laks so the luxury tax will be 5laks as the exceed amount is taxed at 100%.The 318is,C200s,Audi A3s,A5s,A4s are pretty much screwed as the CIF value is beyond 6million in most cases so that's an additional 2.5million++ ontop of the Engine capacity based taxes.

[Rohnd]

Since successive governments have had no policies on public transportation every time they touch duties on vehicles for every budgets.

Their silly political agendas have led to this situation. The mad politicians should not use words like Bracelet, Free Wifi , Small cars for all etc. They must understand these words upset and harm  the entire society.

It is shame for a country that these people ride on Mercs S, BMW 7 , Land Cruses and order new fleets once in every two years, because of their poor mentality. When looking at their vehicles fleet  it can be assumed that Sri Lanka is a very rich country without a single dollar loan free.

Now they say medium size vehicles as Luxury to get duties.

 

 

[kush]

Best is to abolish all permits, take out ministry provided vehicles and give the ministers and politicians a fat vehicle allowance Rs. 250-400K / month and expected to run their own bloody vehicle. Then only they will realize the true picture of vehicle ownership.

 

[PRAGIN]

Again government has amended the gazette for Luxury Tax on Motor vehicles. Latest one as follows;

 

PETROL CAR/STATION WAGON
.	DESCRIPTION	TAX FREE THRESHOLD (CIF)	LUXURY TAX(Amount exceeding the TFT)
8703.21.69	1000CC BELOW	(-Rs. 3,500,000)	N/A
8703.22.50	1000-1300CC		N/A
	1300-1500CC		N/A
8703.23.52	1500-1600CC		N/A
8703.23.55	1600-1800CC		N/A
8703.23.59	1800-2000CC		100%
8703.23.70	2000-3000CC		100%
8703.24.50	3000-4000CC		100%
	4000 ABOVE		100%
PETROL CAR/STATION WAGON HYBRID
HS CODE	DESCRIPTION	TAX FREE THRESHOLD(CIF)	LUXURY TAX(Amount exceeding the TFT)
8703.40.28	1000CC BELOW	(-Rs. 4,000,000)	N/A
8703.40.35	1000-1300CC		N/A
	1300-1500CC		N/A
8703.40.51	1500-1600CC		N/A
8703.40.53	1600-1800CC		N/A
8703.40.58	1800-2000CC		80%
8703.40.71	2000-3000CC		80%
8703.40.91	3000-4000CC		80%
	4000 ABOVE		80%
PETROL CAR/STATION WAGON PLUG IN HYBRID
HS CODE	DESCRIPTION	TAX FREE THRESHOLD(CIF)	LUXURY TAX(Amount exceeding the TFT)
8703.60.28	1000CC BELOW	(-Rs. 4,000,000)	N/A
8703.60.35	1000-1300CC		N/A
	1300-1500CC		N/A
8703.60.51	1500-1600CC		N/A
8703.60.53	1600-1800CC		N/A
8703.60.58	1800-2000CC		80%
8703.60.71	2000-3000CC		80%
8703.60.91	3000-4000CC		80%
	4000 ABOVE		80%
DIESEL CAR/STATION WAGON
HS CODE	DESCRIPTION	TAX FREE THRESHOLD(CIF)	LUXURY TAX(Amount exceeding the TFT)
8703.31.70	1500CC BELOW	(-Rs. 3,500,000)	N/A
8703.32.52	1500-1600		N/A
8703.32.55	1600-1800		N/A
8703.32.59	1800-2000CC		N/A
8703.33.80	2000-2500CC BELOW		120%
8703.33.50	2500-4000CC ABOVE		120%
DIESEL HYBRID CAR/STATION WAGON
HS CODE	DESCRIPTION	TAX FREE THRESHOLD(CIF)	LUXURY TAX(Amount exceeding the TFT)
8703.50.28	1000CC BELOW	(-Rs. 4,000,000)	N/A
8703.50.35	1000-1500CC		N/A
8703.50.51	1500-1600CC		N/A
8703.50.53	1600-1800CC		N/A
8703.50.58	1800-2000CC		N/A
8703.50.78	2000-2300CC		N/A
	2300-2750CC		90%
	2750-3000CC		90%
8703.50.98	3000-4000CC		90%
	4000 ABOVE		90%
DIESEL HYBRID CAR/STATION WAGON PLUG IN HYBRID
HS CODE	DESCRIPTION	TAX FREE THRESHOLD(CIF)	LUXURY TAX(Amount exceeding the TFT)
8703.70.28	1000CC BELOW	(-Rs. 4,000,000)	N/A
8703.70.35	1000-1500CC		N/A
8703.70.51	1500-1600CC		N/A
8703.70.53	1600-1800CC		N/A
8703.70.58	1800-2000CC		N/A
8703.70.78	2000-2300CC		N/A
	2300-3000CC		90%
8703.70.98	3000-4000 ABOVE		90%
ELECTRIC CAR
HS CODE	DESCRIPTION	TAX FREE THRESHOLD(CIF)	LUXURY TAX(Amount exceeding the TFT)
8703.80.31	50 KW BELOW	(-Rs. 6,000,000)	N/A
8703.80.32	50-100 KW		N/A
8703.80.33	100-200 KW		N/A
8703.80.34	200 KW ABOVE		60%
PETROL VAN
HS CODE	DESCRIPTION	TAX FREE THRESHOLD(CIF)	LUXURY TAX(Amount exceeding the TFT)
8704.31.93	VAN(BELOW 1500KG)	(-Rs. 3,500,000)	N/A
8704.31.99			N/A
8702.90.39	PASSENGER VAN 13-20 SEATER		N/A
8702.90.41	1800CC ABOVE		100%
DIESEL VAN
HS CODE	DESCRIPTION	TAX FREE THRESHOLD(CIF)	LUXURY TAX(Amount exceeding the TFT)
8704.21.93	UP TO 2300CC	(-Rs. 3,500,000)	N/A
8704.21.99	2300CC ABOVE		120%
8702.10.39	PASSENGER VAN 13-20 SEATER		N/A
8702.10.49			N/A
8702.10.41	2300CC ABOVE		120%
ELECTRIC VAN
HS CODE	DESCRIPTION	TAX FREE THRESHOLD(CIF)	LUXURY TAX(Amount exceeding the TFT)
8703.80.51	50 KW BELOW	(-Rs. 6,000,000)	N/A
8703.80.52	50-100 KW		N/A
8703.80.53	100-200 KW		N/A
8703.80.54	200 KW ABOVE		60%
DIESEL DOUBLE CAB
HS CODE	DESCRIPTION	TAX FREE THRESHOLD(CIF)	LUXURY TAX(Amount exceeding the TFT)
8704.21.91	BELOW 2300CC	(-Rs. 3,500,000)	N/A
8704.21.92	ABOVE 2300CC		120%
PETROL DOUBLE CAB
HS CODE	DESCRIPTION	TAX FREE THRESHOLD(CIF)	LUXURY TAX(Amount exceeding the TFT)
8704.31.91	BELOW 2200CC	(-Rs. 3,500,000)	N/A
8704.31.92	ABOVE 2200CC		120%

 

Edited April 18, 2019 by Prangi

[vag2]

so  the 3.5million CIF  value and the engine capacity BOTH need to be exceeded?

for example in the segment non-hybrid petrol, no additional luxury tax upto 1800CC?

[Magnum]

This luxury tax is a one time payment or we pay it yearly?

[amsandun]

1 hour ago, Magnum said:

This luxury tax is a one time payment or we pay it yearly?

It's a one time payment which is to be paid at the time of importation of the vehicle.

[PRAGIN]

2 hours ago, vag2 said:

so  the 3.5million CIF  value and the engine capacity BOTH need to be exceeded?

for example in the segment non-hybrid petrol, no additional luxury tax upto 1800CC?

Exactly. 

1 hour ago, Magnum said:

This luxury tax is a one time payment or we pay it yearly?

It's one time payment to the customs at the time of clearing the vehicle. But this circular doesn't say anything about annual up to 7 years luxury tax.

[mcs627]

https://www.google.com/amp/s/www.topgear.com/car-news/electric/mercedes-e-class-now-comes-diesel-hybrid%3famp

[iRage]

Still makes no sense....so a base Hybrid Camry will be slammed with luxury tax whilst a Turbo charged diesel Hybrid E-Class will not ?  (the CIF value will exceed the tax threshold but still it says 0% luxury tax).

[PRAGIN]

31 minutes ago, iRage said:

Still makes no sense....so a base Hybrid Camry will be slammed with luxury tax whilst a Turbo charged diesel Hybrid E-Class will not ?  (the CIF value will exceed the tax threshold but still it says 0% luxury tax).

That is how our policy makers think. Camry is luxurious than a Merc E300. I think best way is horse power or the CIF if they really want to save foreign currency.

[mcs627]

Actually a E300 de (and C300 de) is more eco friendly as it is a PHEV and can do daily city commutes on EV mode and long distance trips on diesel which gives better fuel economy than a petrol non PHEV hybrid vehicle.  The Camry Hybrid which has a 2.5 litre petrol engine cannot be considered equally versatile. The Camry hybrid is based on 2 decade old hybrid synergy drive tech. If the Japs can combine turbo and PHEV tech like euro cars one could have Camrys and Accords running on 1.5-1.8 L engines and Axios  and Prii running on 1 - 1.2 l. *The  BMW 740e and Range Rover PHEV have 2 L engines. 

 

 

 

Edited April 19, 2019 by mcs627

[iRage]

44 minutes ago, mcs627 said:

Actually a E300 de (and C300 de) is more eco friendly as it is a PHEV and can do daily city commutes on EV mode and long distance trips on diesel which gives better fuel economy than a petrol non PHEV hybrid vehicle.  The Camry Hybrid which has a 2.5 litre petrol engine cannot be considered equally versatile. The Camry hybrid is based on 2 decade old hybrid synergy drive tech. If the Japs can combine turbo and PHEV tech like euro cars one could have Camrys and Accords running on 1.5-1.8 L engines and Axios  and Prii running on 1 - 1.2 l. *The  BMW 740e and Range Rover PHEV have 2 L engines. 

 

 

 

A few points:

1. Nope....the HSD was completely revamped for the TNGA platform...does it have know-how from the original HSD integrated in to it...yes. But that is like saying a modern internal combustion engine is the same as a century old technology. 

2.  This is luxury tax..not to be confused with eco tax. The excise taxes, etc...are there for providing benefits for eco friendly cars.  If the objective was to lessen the foreign exchange being seeped out in buying cars...then incentivisizing the purchase of a high value vehicle does not work does it ?

3. The Japanese have been R&Ding the downsized engines for a sometime and now they are being rolled out...so yes...the Corolla and even the mini cross overs come with a 1.2L engine. 

[mcs627]

My point here being Japs have not mated Turbos with Hybrid or PHEV tech in any significant scale yet and are lagging behind their {luxury} European counterparts who are doing it in a large scale to achieve tax breaks and fuel efficiency goals with far better safety tech. Though the manufacturer price of these high end vehicles might be almost twice the price of a similar Jap vehicle the tax/duty benefits and the final cost makes these modern euros more appealing ( CIF value expressed as a fraction of the total cost to acquire).  One can only presume that plenty of C & E 300de Mercs will be finding their way here at least on retirement permits. Most of the budget ICE vehicles and sub 800 cc hybrids that the ever evolving duty cum luxury taxes are progressively promoting to be imported are death traps considering the developing road network and expressways. Kei cars designed for town use in Japan are plying highways with varying road conditions and major expressways whereby being utilised beyond their intended purpose and safety limits. 

Edited April 20, 2019 by mcs627

[vag2]

S

On ‎4‎/‎19‎/‎2019 at 10:03 AM, mcs627 said:

The  BMW 740e and Range Rover PHEV have 2 L engines. 

straight to the point, a Half sized Prius needing 1.8L is just absurd compared to the bigger European rivals equipped with modern technology. Especially Toyota seems to stick with PFI naturally aspirated engines which provide low power per displacement.

[iRage]

On 4/20/2019 at 1:38 AM, mcs627 said:

Though the manufacturer price of these high end vehicles might be almost twice the price of a similar Jap vehicle the tax/duty benefits and the final cost makes these modern euros more appealing ( CIF value expressed as a fraction of the total cost to acquire). 

Again...you are missing the point of a Luxury tax versus a Eco-tax. Also, wouldn't you think that these technologies would add to the manufacturing price ? Which goes contrary to what the standard Toyotas and Nissans try to achieve (price conscious motoring solutions) ? 

[mcs627]

Point taken. However if one wants price conscious motoring solutions - 50 cc mopeds, tuks and uber are a few options that come to mind ? Acually if you think about it the japs don't want to jump 2 steps ahead and give us hybrids with turbocharged engines. They are keeping it for later. Just like the iphone 6s was rolled out. We are getting ripped off.on.a staggered basis. The never-ending upgrade and planned obsolescence cycle. If an ICE Honda Civic could be turbocharged why not a Prius or an Axio Hybrid ???

Edited April 21, 2019 by mcs627

[vag2]

 

4 hours ago, mcs627 said:

If an ICE Honda Civic could be turbocharged why not a Prius or an Axio Hybrid ???

actually the 2L civic type-R 2015 model engine was developed in Europe with partners like Bosch,Mahle. Honda, in a first for JOEMs (wisely) decided around 2011 to introduce downsized GDI turbocharged technology which was becoming a trend in European hatchbacks(not to be confused with the Mitsubishi GDI systems from the 90s, for bigger engines) The 1L Civics are just a minor variant of the 2L mainstream civics that produce over 300HP. So in fact it IS European tech inside, in addition with VTEC AND VVT. The same technology is used also in many Acura SUVs and sedans in US and China,and has made good profit for Honda. Toyota on the other hand was over confident about their Atkinson cycle bigger PFI engines, which were best for mating with the low torque /high efficient parallel drivetrains.

[mcs627]

8 hours ago, vag2 said:

Toyota on the other hand was over confident about their Atkinson cycle bigger PFI engines, which were best for mating with the low torque /high efficient parallel drivetrains.

Agreed. The BMW I8 with a 1.5 L engine ( though it has an unrealistically inflated manufacturer price) defies Toyota logic and proves that hybrid powertains could be mated to a small turbocharged engines with excellent power and fuel efficiency (the 225e is a comparatively cheaper example). It is interesting to note that the 2019 Toyota Supra is a BMW Z4 in a different costume. 

Edited April 22, 2019 by mcs627

[iRage]

14 hours ago, mcs627 said:

Point taken. However if one wants price conscious motoring solutions - 50 cc mopeds, tuks and uber are a few options that come to mind ? Acually if you think about it the japs don't want to jump 2 steps ahead and give us hybrids with turbocharged engines. They are keeping it for later. Just like the iphone 6s was rolled out. We are getting ripped off.on.a staggered basis. The never-ending upgrade and planned obsolescence cycle. If an ICE Honda Civic could be turbocharged why not a Prius or an Axio Hybrid ???

I don't know if you are being sarcastic or being completely oblivious.

1. Price conscious motoring....does not mean using a tuk tuk or uber....by this statement you are also implying that people in SL buy cars for wanting to be exorbitant. Also...cars like the Axio, Prius are not pricey cars...they are pricey in Sri Lanka because of stupid policies. You seem to be missing that when comparing Mercs and Toyotas....

2. The ICE Civic is a ICE ! Pure Gasoline engine....why on earth would a sane person compare that with a Hybrid ? It is also obvious that you are oblivious to developments that are happening with model changes. The Civic (which is a pure gasoline only model) went turbo charged with the change of model. The Corolla with the change of model is also going turbocharged with its pure gasoline engines and Hybrid line up will be separate. This seems to be the general strategy for Toyota (and even Nissan and Honda) when and where feasible, some markets will still have the large capacity pure gasoline engine purely for maintainability sake. Most of Toyota's turbo know-how had been improved through the BMW and Subaru partnerships....and the other's Hybrid tech has been improved via Toyota's Hybrid know-how. So it goes both ways (if you had read any of my previous posts you would know that Toyota's HSD patents are free for use)

3. It is not a matter of holding out. Holding out serves no purpose to anyone..including themselves...them holding out and then putting out old technology is not going to make them any more richer. The Japanese have always been conservative when it comes to rolling out automotive tech. They have always been so and always will be. They play a long R&D game along with waiting and watching what happens to others and their tech...The classic statement "The US/West will invent it, Japanese will improve it and Chinese will mass produce it cheaply" still holds.

Edited April 22, 2019 by iRage