Reduction In Motor Car Duty

[xXx]

Hi Pals, how sure r u'll of the tax reduction? Actually the car prices have gone up a bit after the presidential elections. I am not sure if it would happen again after this April election as well.

forgot to comment on this earlier. car market came to a stand still just before the elections as lot of people (atleast the colombo crew) expected a change in regime and thus a revival of the car market like what happened with the stock exchange after the war. buyers held back hoping for the prices to come down and seller held back hoping to cash in on the sudden demand. now that all hope is lost buyer are back in the market and sellers are taking advantage of this minor spike. market will come to a halt once again with the general election as the 2010 budget is due. we just have to wait and see and hope for the best.

[rangerover]

Even if the second hand market prices comes down. The incremental amount you have to pay to buy a new car would fall as a result of reduced duty prices. So i guess everyone will be better off. Only issue is for people who have leased cars and also car sales that have stocked up inventory!

Eventhough duty prices come down to the 2006/07 level, the significant appreciation of the yen since 06/07 would reduce the benefit we could enjoy!

[xXx]

Even if the second hand market prices comes down. The incremental amount you have to pay to buy a new car would fall as a result of reduced duty prices. So i guess everyone will be better off. Only issue is for people who have leased cars and also car sales that have stocked up inventory!

Eventhough duty prices come down to the 2006/07 level, the significant appreciation of the yen since 06/07 would reduce the benefit we could enjoy!

well machang in sri lanka thigns that go up never come down to their original price but i'll take some form of a reduction over the current price

[esdeez]

Interesting article which makes specific reference to vehicles: http://www.lankatimes.com/fullstory.php?id=25338

Quote:

'Even the IMF acknowledged that Sri Lanka could not generate the income it expected in the 2009 budget, particularly duties from vehicle imports.

"The government imposed high duties on vehicle imports, sometimes as high as 300 percent. This resulted in depressing the vehicle imports market and the government did not gain what it wanted. These are some of the issues the taxation commission is looking at and would try to resolve. High taxes do not serve the purpose," the official said.'

Edited March 6, 2010 by esdeez

[GTAm]

I am hoping that these crazy taxes will be reduced and the people of this country can buy some decent cars at decent prices once again.

I know that people who leased cars would lose out. Actually I would lose out personally too. But everyone can't win. Unless the govt recognizes this and direct financial institutions to give some relief to existing lessees (v unlikely). I mean business is going to boom for them if duties are reduced.....

These duties are crazy and so we have to make do with poor quality cars.

It would have been understandable if we had a large car manufacturing base to protect. But we don't.

Whatever happens it will be after the elections when we'll have to get used to sky high fuel prices once again!

[Edward]

I am hoping that these crazy taxes will be reduced and the people of this country can buy some decent cars at decent prices once again.

I know that people who leased cars would lose out. Actually I would lose out personally too. But everyone can't win. Unless the govt recognizes this and direct financial institutions to give some relief to existing lessees (v unlikely). I mean business is going to boom for them if duties are reduced.....

These duties are crazy and so we have to make do with poor quality cars.

It would have been understandable if we had a large car manufacturing base to protect. But we don't.

Whatever happens it will be after the elections when we'll have to get used to sky high fuel prices once again!

Hi Guys,

What is the latest update on this ?. Are we going to get the cars cheaper after the elections.

[Gummybr]

Hi Guys,

What is the latest update on this ?. Are we going to get the cars cheaper after the elections.

You will have to wait till May, but I think it'll be only for vehicles below 1600cc. We'll have to wait and see.

[rangerover]

yes. the current duty of around 278% on 1600cc and below is expected to be bought down to around 180%. Essentially a 54% drop in duty. Basically a car which is 1,800,000 CIF get charged with around 5,000,000 duty, and sells for around 7 million + (toyota allions and premios for example). With the proposed structure it would sell for around 5,000,000 +. Essentially,brand new car prices would fall by around 30 - 35% effectively. Second hand car market wouldnt neccessarily fall my the same amount.

The government is also seriously considering the wealth levels of the population. In most households the car is the most expensive of second most expensive (if living in own accommodation) investment. And a huge drop in value will have dire effects on wealth levels of the country. So some times this duty reduction could be staggered over a period of time.

Car sales have also urged the government to stick to one policy as speculation on duty reductions have seriously dried their throughput. There is also a request to implement the new duty structure in about a year, until leasing companies and car sale with exsisting stock can minimise losses. But one should not forget, that these parties also creamed from sudden surges in duty prices. It is time to balance out gains now

[TharakaWi]

I would be thrilled to have tax reduced. Right now, even middle class people cannot afford a family car due to these taxes. There had been many rumours before previous budgets about change of tax. I think it's a similar situ this time too... IMHO it is highly unlikely these taxes would come down...

[Prasanna_ariya]

Guys,

I heard from a very reliable source that duty prices of motor vehicles would be reduced from the 280% odd to 180% (for petrol) odd by the budget this April or may. Im not sure what all categories are and or whether the reduction would be staggered. But what i was told is that it will be reduced to rates that exsisted during 2006/2007

How do you think this will affect the exsisting car market of second hand cars and unregistered cars already imported and idle at sales.?

Would the effects of such a reduction be immediately felt for prospective buyers and sellers?

Wonder how leasing companies would react

[3000cc]

Hey guys,

As far as I heard they will reduce tax for Cars & will not reduce in SUVs

[Edward]

Hey guys,

As far as I heard they will reduce tax for Cars & will not reduce in SUVs

Hi Guys,

Even I heard the tax is going to be reduced for cars below 1500cc, but do not know how much?. Any one know when the budget speech is?

[Devinda_Z]

Any one know when the budget speech is?

Likely date will be announced no sooner parliament is reconvened

[rangerover]

Hi Guys,

Even I heard the tax is going to be reduced for cars below 1500cc, but do not know how much?. Any one know when the budget speech is?

1500cc or 1600cc? i heard it was 1600cc, as the exsisting braket is 1600. 1500 would definetely eliminate the corolla and civic brand news.

[Edward]

1500cc or 1600cc? i heard it was 1600cc, as the exsisting braket is 1600. 1500 would definetely eliminate the corolla and civic brand news.

Yes it is 1600CC

[NFS]

Likely date will be announced no sooner parliament is reconvened

I heard that the Budget speech is on May 22nd.

[racerx]

Guys,

I heard from a very reliable source that duty prices of motor vehicles would be reduced from the 280% odd to 180% (for petrol) odd by the budget this April or may.

Based on this info, Im selling my current car! Suckas

[Edward]

Based on this info, Im selling my current car! Suckas

GOOD LUCK

[Edward]

GOOD LUCK

Hi Friends,

In midst of the rumer of reduction in the duty of the motor cars ,I noticed in the past two months, the second hand car prices have gone up much further. Specialy FB 15 & AE 110. 2000 model FB 15 is being sold at 18 above, where it was only 16.5 few months back, the same story with AE 110. I wonder what may be the reason behind it, may be the people are thinking that the duty may be incresed in the comming budget. Any comments on this.

[lasi]

Hi Friends,

In midst of the rumer of reduction in the duty of the motor cars ,I noticed in the past two months, the second hand car prices have gone up much further. Specialy FB 15 & AE 110. 2000 model FB 15 is being sold at 18 above, where it was only 16.5 few months back, the same story with AE 110. I wonder what may be the reason behind it, may be the people are thinking that the duty may be incresed in the comming budget. Any comments on this.

I've norticed the same

[esdeez]

Hi Friends,

In midst of the rumer of reduction in the duty of the motor cars ,I noticed in the past two months, the second hand car prices have gone up much further. Specialy FB 15 & AE 110. 2000 model FB 15 is being sold at 18 above, where it was only 16.5 few months back, the same story with AE 110. I wonder what may be the reason behind it, may be the people are thinking that the duty may be incresed in the comming budget. Any comments on this.

It may be that they anticipate a reduction in duty, so they want to make as much as possible now using high import tax as an excuse, before it comes down.

Edited April 22, 2010 by esdeez

[oshad]

I ve seen this adds and this adds are the usual crazy pricing ads we see on and off where da owners tend to think they can make a fast buck by over quoting assuming they get a buy in from a clueless buyer... I dnt this the market proces has moved at all ither than this

[Edward]

I ve seen this adds and this adds are the usual crazy pricing ads we see on and off where da owners tend to think they can make a fast buck by over quoting assuming they get a buy in from a clueless buyer... I dnt this the market proces has moved at all ither than this

The funny part of it, these sellers are able to sell it & the poor buyers are buying it, without a clue.

[isurujosh]

The funny part of it, these sellers are able to sell it & the poor buyers are buying it, without a clue.

i know quite a few of these cars with these so called absurdly high prices, actually move! if the sellers somehow are able to sell these cars and buyers are willing to buy and those who are hunting for a bargain has to wait for a long time to find a catch then i think we got a new equilibrium price. i think the current market is facing reality now. when a brand new civic costs 10 million bucks how can we say that a 2004 one aint worth 3 million? add to that the fact that money supply has been increased since of late and a new round of inflationary pressure is on car prices is on too.

[rangerover]

10 mil for the civic?? i thought it is around 6.5