Tax Free Car Scheme Ends

[madmax]

Getting back to your point GTAm, I also am confused how the duty free scheme can be used to buy locally assembled vehicles...

Do they pay for the parts and forget about the duty, or they pay the CIF value in SL + labour (forgetting the fact that the money will again be remitted back)

Buying a locally assembled vehicle is governed by a government circular, somewhat different to the first Tax Free circular with the CIF value. The government has given a max value for the parts that can be imported, and taxes are paid for the parts. The local labor cost is added onto that and also 20% VAT value to the total price. The taxation for the parts is governed by the above said circular issued by the Treasury.

Here's the circular

http://www.treasury.gov.lk/EPPRM/ttip/vehi...end20070921.pdf

Edited April 3, 2008 by madmax

[xXx]

Having been used to an open economy for 20 odd years I doubt we can survive if its to be closed. So I’m not too fussed about the amount of currency that went out of the country because of 20 - 30 odd thousand permits. These vehicles would have hit our roads within couple of years anyway. My main objection/point is that is hell of a lot of money the government lost on tax. Majority of this tax money is used by the MOD to buy out dated war machinery and the rest is used as wages for over crowded staff in government departments.

[madmax]

Even though 20,000 government servants were eligible for the permits, I'm sure that the number of actual imports will remain under 5000, considering the prices.

[Kulunu]

Another permit will be going to issue to semi government engineers.

I have just seen it in news bar of ITN news

[Devinda_Z]

Another crazy move. After issuing so many permits, they probably realize that the country really cannot afford it after all. Anyway I'm a bit happy that a locally asembled car can be purchased. But any idea what the local content is? We may not be saving that much forex after all!

i recall a figure in the region of 30-38% local content being necessary to fit into the bracket of a local manufacturer

[6208]

Another permit will be going to issue to semi government engineers.

I have just seen it in news bar of ITN news

This is on the Lakbima online edition today. Now what is the purpose ending it for some people and starting it for another? I heard that there are around 18000 permits issues so far out of which around 12000 vehicles imported.

Any one in Autolanka using a Kyron or a Action (both assembled in here)? How is the quality and reliability of them?

[Kulunu]

I have used locally assembled rexton.It is quality and build quality is similar with montero.

I think same with Kyron and Actyon as well.

[Overdrive]

I have used locally assembled rexton.It is quality and build quality is similar with montero.

I think same with Kyron and Actyon as well.

I doubt it very much mate.. The materials used and the finish is not even close to the montero.

[Kulunu]

I have used a rexton and after crashed it now we have diesel montero.

When comparing these rexton is better for me.

Seats are better in montero.

But rexton can goes fast than montero and 4 Front gears are in montero ,but 5 in rexton and Multi stering functions too.

Engine is less nicer in rexton like a petrol suv.

I feel driving rexton much easier than montero.

Interior is much decent than in rexton to me than montero.

There was much options in rexton which not exists in montero, HID,Electric seats,

I doubt it very much mate.. The materials used and the finish is not even close to the montero.

[xXx]

There was much options in rexton which not exists in montero, HID,Electric seats,

you get both these options in Montero. are you talking about the pajero model one? if not you may have bought a low grade one with no option at all.

just out of curiosity, if a permit vehicle is written off by the insurer what is the amount the owner will receive? amount he paid? or the market value of the vehicle? if its the latter one there's the loophole for you boys lol

[Kulunu]

I don't know about insurance because this wasn't a permit one.

I think For permit onces also should be insured at market value.

This montero is a permit one which is imported under a PM name.

[pissa]

you get both these options in Montero. are you talking about the pajero model one? if not you may have bought a low grade one with no option at all.

just out of curiosity, if a permit vehicle is written off by the insurer what is the amount the owner will receive? amount he paid? or the market value of the vehicle? if its the latter one there's the loophole for you boys lol

what ever the insured amount right? so if the permit buyer insured at the market value, he'd get that, or else if he insured at the price he bough it for, then that's all he gets.....as you say, for those who insured at the actual market value, here's the option to cash in!!! but make sure you jump out of the vehicle first LOL!!!!

[Watchman]

just out of curiosity, if a permit vehicle is written off by the insurer what is the amount the owner will receive? amount he paid? or the market value of the vehicle? if its the latter one there's the loophole for you boys lol

A friend fo mine got a Lancer EX on the permit, and apparently the vehicle's insurance premium is calculated ont eh CIF value. So logically, since the CIF value is the same(permit or not), i think the payback should also be the same.

I'm not a finance/insurance major Though the principle of insurance is to 'replace what was lost' the insurance company should payback what it would cost to replace the vehicle lost (or a certain percentage of it due to depreciation) with an equal one, which would ahve to then be bought without a permit, thus MORE...

[xXx]

This montero is a permit one which is imported under a PM name.

hope you didn't pay too much sicne it lack lot of options

[xXx]

I'm not a finance/insurance major Though the principle of insurance is to 'replace what was lost' the insurance company should payback what it would cost to replace the vehicle lost (or a certain percentage of it due to depreciation) with an equal one, which would ahve to then be bought without a permit, thus MORE...

dilli, permit holds a value. some people are lucky enough to get it for free. so taking that into consideration it is fair to get the market value

[6208]

just out of curiosity, if a permit vehicle is written off by the insurer what is the amount the owner will receive? amount he paid? or the market value of the vehicle? if its the latter one there's the loophole for you boys lol

What I heard from my insurance agent was, the insurance company will pay you the amount that you are insured for, with a penalty if under valued. but if you have to write off the vehicle then it has to be tranferred to the insurance company for which you have to get permission from the government. At this time you have to pay the balance tax. It is basically the same case as if you wanted to sell the vehicle before 5 years.

[The Don]

you get both these options in Montero. are you talking about the pajero model one? if not you may have bought a low grade one with no option at all.

just out of curiosity, if a permit vehicle is written off by the insurer what is the amount the owner will receive? amount he paid? or the market value of the vehicle? if its the latter one there's the loophole for you boys lol

I think XxX its because the Montero offered on the permit was not the highest spec one due to the CIF value limitations.

[xXx]

What I heard from my insurance agent was, the insurance company will pay you the amount that you are insured for, with a penalty if under valued. but if you have to write off the vehicle then it has to be tranferred to the insurance company for which you have to get permission from the government. At this time you have to pay the balance tax. It is basically the same case as if you wanted to sell the vehicle before 5 years.

hmmm... make sense. no loophole there then.

I think XxX its because the Montero offered on the permit was not the highest spec one due to the CIF value limitations.

didn't he say it was bought under a MP permit?

[Kulunu]

But you will get 80% on the value which has insured.

what ever the insured amount right? so if the permit buyer insured at the market value, he'd get that, or else if he insured at the price he bough it for, then that's all he gets.....as you say, for those who insured at the actual market value, here's the option to cash in!!! but make sure you jump out of the vehicle first LOL!!!!

[Kulunu]

Yes ,this is a very basic model.

Engine sounds like a old lorry.

I think XxX its because the Montero offered on the permit was not the highest spec one due to the CIF value limitations.

[madmax]

Yes ,this is a very basic model.

Engine sounds like a old lorry.

Engine doesn't differ from basic model to the loaded one.

[crazyguy]

Does anyone know if this scheme will be back in the near future ? Do we have any elections coming up ?

[Kulunu]

But there are 3.2L turbo engine in Japanese domestic model.

Engine doesn't differ from basic model to the loaded one.

Edited April 4, 2008 by Kulunu

[Kulunu]

Hope not to.

Election means money wastage and it will rise the the inflation and more tax will be on vehicles.

Does anyone know if this scheme will be back in the near future ? Do we have any elections coming up ?

[xXx]

Hope not to.

Election means money wastage and it will rise the the inflation and more tax will be on vehicles.

i would rather take that and send this government home.

actually if you look at the bigger picture, if the 'main' opposition can send this family regime packing, costs involved in having a new election will be offset withing mere couple of months.