What Are The Chances....?

[esdeez]

Just like to get your opinions on matters with car tax.

Right now there is a lot of buzz about a supposed imminent reduction in car import tax. However, as of yet there is still nothing solid us car fanatics can bank on...

So what do u guys reckon the chances are and when. And if so, by how much?

It doesn't take a genius to figure out we need a reduction in car tax as SL is one of the most expensive places to own a car. The problems this has caused to people are numerous, like families who anywhere else would otherwise afford a safe family saloon are forced to pile themselves onto motorbikes or into 3 wheelers... And of course those poor car importers who are no doubt struggling to make ends meet...

Dare I ask would the elections make any difference? :S

[NFS]

Just like to get your opinions on matters with car tax.

Right now there is a lot of buzz about a supposed imminent reduction in car import tax. However, as of yet there is still nothing solid us car fanatics can bank on...

So what do u guys reckon the chances are and when. And if so, by how much?

It doesn't take a genius to figure out we need a reduction in car tax as SL is one of the most expensive places to own a car. The problems this has caused to people are numerous, like families who anywhere else would otherwise afford a safe family saloon are forced to pile themselves onto motorbikes or into 3 wheelers... And of course those poor car importers who are no doubt struggling to make ends meet...

Dare I ask would the elections make any difference? :S

Oh yeah thats right, even I have heard the same from several people. And they say its not going to be just a small reduction but by quite a substantial amount. You might have even noticed that most of the car sales hardly have any unregistered vehicles these days.

But the question is when is this reduction going to be effected and by how much, which I am also very eager to know.

[madmax]

The government needs a lot of money for development of the country and also for their own corrupt pockets. How can they do it without these taxes? I don't see that pattern changing anytime soon no matter who comes to power.

Edited January 17, 2010 by madmax

[esdeez]

Oh yeah thats right, even I have heard the same from several people. And they say its not going to be just a small reduction but by quite a substantial amount. You might have even noticed that most of the car sales hardly have any unregistered vehicles these days.

But the question is when is this reduction going to be effected and by how much, which I am also very eager to know.

Its very true in the sense that the government has really shot itself in the foot by increasing taxes to the dizzy heights they are at now. By doing so, instead of raking more money in from imports, they have chased new car buyers away and reduced unregistered car sales to a pittance.

Actually, any rethink on import tax wouldn't be because of the government realizing the plight of the motorists, it would most probably to get more money from the import of cars again.... Sad but true..

[Rebel]

Two sides to the story.

Lower taxes mean; better cars on roads therefore safer to passengers and environment. Also better fuel economy ends up as a saving.(except for tax on fuel)

But it also means more vehicle on the roads; and as I don't think we have an exit plan for the older vehicles this means more congestion and more pollution etc. Also bear in mind infrastructure is not really up to par.

Higher taxes can also be seen as a deterrent to everybody buying a car. Also average person is going to need credit to finance a new car so more debt.

It's Catch 22 really and hence not worth wasting time on

Edited January 17, 2010 by Rebel

[GTAm]

My personal opinion is that they have to sooner or later. Most probably later as the govt. will not want to be seen as bowing down to IMF directives.

Heard that the Motor Traders Assn met up with the big man and urged him not to reduce until lots of their stocks are depleted.

[NFS]

Its very true in the sense that the government has really shot itself in the foot by increasing taxes to the dizzy heights they are at now. By doing so, instead of raking more money in from imports, they have chased new car buyers away and reduced unregistered car sales to a pittance.

Actually, any rethink on import tax wouldn't be because of the government realizing the plight of the motorists, it would most probably to get more money from the import of cars again.... Sad but true..

some say that there is pressure from the japanese govt too, since there is some agreement for road development in sri lanka by the japanese govt. Also due to the prevailing high rates of taxes its more of non japanese cars that have captured the market over the past 4 years.

[esdeez]

Two sides to the story.

Lower taxes mean; better cars on roads therefore safer to passengers and environment. Also better fuel economy ends up as a saving.(except for tax on fuel)

But it also means more vehicle on the roads; and as I don't think we have an exit plan for the older vehicles this means more congestion and more pollution etc. Also bear in mind infrastructure is not really up to par.

Higher taxes can also be seen as a deterrent to everybody buying a car. Also average person is going to need credit to finance a new car so more debt.

It's Catch 22 really and hence not worth wasting time on

Yeah, it true about the infrastructure. Its a shame to think that hardly any of the tax earned from cars has been directly put back into the roads... If tax were to be reduced I would imagine a flood of people would flock after new and reconditioned cars, like after the import ban. And no, our roads probably wouldn't be able to handle the influx...

Interesting what Gtam heard. If they did reduce tax the importers would get hurt for the cars they already have, but surely it would benefit them in the long run, so sooner the better? I guess not....

[xXx]

My personal opinion is that they have to sooner or later. Most probably later as the govt. will not want to be seen as bowing down to IMF directives.

Heard that the Motor Traders Assn met up with the big man and urged him not to reduce until lots of their stocks are depleted.

You will be surprised at how powerless the Importers association is, even though it consists of some of the wealthiest individuals in the country. Every time when there was a tax hike in the past they've had discussions with the head of the state but up to this date none of those meetings have delivered any results.

May be this time they'll have some better luck with Ajmal playing for the blue team LOL.....

Note: before people get all worked up about me bashing the government, above comment on Ajmal was made not to discredit the current rulers but to add some sarcasm to this post on Ajmal’s expense.

Edited January 22, 2010 by xXx

[SeanD]

As far as I know, the decisions have already been made and will be revealed after April. The rumours started around the time this committee was put together some months back. I'm not sure what the outcomes are, but I believe they have revamped the complete tax structure. I don't know if car taxes were changed but I do know one of the external researchers for this committee who believed this would be the case. If you know someone on the committee then ask them and see maybe:

http://www.lankatimes.com/fullstory.php?id=23863

Edited January 23, 2010 by SeanD