Reduction In Motor Car Duty

[Thanushka]

It seems due to high taxes Micro cars have gained the best of it. Today I went to their showroom @ Kotta Rd and found they have released a new sedan called Micro Mx7 Mark II for around 2.25 Mil. With the high tax rates on imports, these vehicles would gain the maximum benifit.

[Chris0628]

Nice.... guess very soon we might all be driving 3 wheelers

[isurujosh]

if the whole idea behind a reduction in motor car tax rate is to increase the total tax revenue then i don't see how the most popular below 1.5L class will see any material reduction in the duty rate.

i don't know how true these stories are but this project to do with re-badged "made in sri lanka cars" and the micro car business is said to be well connected to the higher-ups. if that is the case then i don't see how any change will be done to the status-quo.

[xXx]

In short, a country running for a whole year without a budget, without accountability without managing expenses. For a whole year.

Yeah, this should go well.

Funny thing is they believe abolishing the PR system is the answer to the ecomonic and social crisis we are in right now, hence bringing in constitutional reforms have a higher priority than producing a budget for this year. suba anagathayak indeed.

anyway getting back to the topic, as lot of you have expressed a tax reduction on motorcars will increase government revenue but it'll also be an extra strain on the value of the rupee. My view is best cause of action is to reduce the taxes gradually to avoid any sudden influxes while trying to retain the economic benefits of IMF and GSP+ schemes.

[harshansenadhir]

Funny thing is they believe abolishing the PR system is the answer to the ecomonic and social crisis we are in right now, hence bringing in constitutional reforms have a higher priority than producing a budget for this year. suba anagathayak indeed.

anyway getting back to the topic, as lot of you have expressed a tax reduction on motorcars will increase government revenue but it'll also be an extra strain on the value of the rupee. My view is best cause of action is to reduce the taxes gradually to avoid any sudden influxes while trying to retain the economic benefits of IMF and GSP+ schemes.

+1

[Edward]

if the whole idea behind a reduction in motor car tax rate is to increase the total tax revenue then i don't see how the most popular below 1.5L class will see any material reduction in the duty rate.

i don't know how true these stories are but this project to do with re-badged "made in sri lanka cars" and the micro car business is said to be well connected to the higher-ups. if that is the case then i don't see how any change will be done to the status-quo.

http://in.reuters.com/article/domesticNews...0100429?sp=true

Dear Friends,

Please view the attached site, as per the this, there will be no changes in the duty till the budget is submitted in November.

[xXx]

http://in.reuters.com/article/domesticNews...0100429?sp=true

Dear Friends,

Please view the attached site, as per the this, there will be no changes in the duty till the budget is submitted in November.

I don't understand why the word 'economic reforms' kept on popping up in that article. Last time i checked we have an open economy and has been since 1977/78. Yes we have an absurd tax structure but that is in place not to discourage certain industry but solely due to poor economic foresight and habit of coming up with string of temporary solutions.