Reduction In Motor Car Duty

[Chris0628]

The Sri Lankan Auto market is bloody absurd

[MkX]

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.

Yes this is true. One of my car friend sold his FB-15 around 17.5 which needed some repairs which will cost around 70K.

[seeker]

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

An year ago, yes.

Now the 1.8 fully loaded sell at 10Mn and 1.6 is priced 7.9Mn by the agents...!!

[isurujosh]

so as i said, isn't a 2004 Fb15 a bargain for 2.5 million

[Edward]

If the goverments wants to reduce the duty, the day they announce it, the present market will fall. Then only the people will stop buying for these very high prices.

[rangerover]

Wonder if the duty concession would only be for brand new vehicles, as it was in the case for permits. If thats the case, given the high CIF value it will still be a costly affair to buy a car. And most demanded models in sri lanka are JDM's. Wonder how this would work out?

[samanp]

looks like we have to wait longer to see as there will be no budget for at least 3 months (if this new is true click here

[Edward]

looks like we have to wait longer to see as there will be no budget for at least 3 months (if this new is true click here

Do you think any thing will be announced regarding the duty, in the supplementary estimate, whis is to be presented in the parliment.

[esdeez]

If the goverments wants to reduce the duty, the day they announce it, the present market will fall. Then only the people will stop buying for these very high prices.

I have my doubts that sellers, especially importers who have already paid high tax for the cars on their forecourts would be willing to sell them at a low/resonable price for quite some time, when and if they reduce import tax.... Sad but true...

Edited April 23, 2010 by esdeez

[EXMAC]

Do you think any thing will be announced regarding the duty, in the supplementary estimate, whis is to be presented in the parliment.

Hmmmm....unlikely i guess....i think this vote on account thing wont address any serious policy issues, & it's abt just allocating a budget for spending......

[isurujosh]

i wonder how many people are going to be able to buy a brand new civic when the price decreases, at best from 10 million to 8 million. sure tax decrease might help ease prices, but think, going forward in the long run the high prices of cars are here to stay. i would not wait many more months for a purchasing decision.

[Edward]

i wonder how many people are going to be able to buy a brand new civic when the price decreases, at best from 10 million to 8 million. sure tax decrease might help ease prices, but think, going forward in the long run the high prices of cars are here to stay. i would not wait many more months for a purchasing decision.

Hi Guys,

There is an article regaring this subject in business times. But it says only about brand new vehicles . They have given the number of cars sold in the past 3 years, & asked the government to cut the taxes of brand new cars. What about reconditioned cars?????

[madmax]

Hi Guys,

There is an article regaring this subject in business times. But it says only about brand new vehicles . They have given the number of cars sold in the past 3 years, & asked the government to cut the taxes of brand new cars. What about reconditioned cars?????

Here's the article,

http://www.sundaytimes.lk/100425/BusinessTimes/bt03.html

[Miyuru Daminda]

http://www.lankadeepa.lk/2010/04/26/front_news/04.htm

Government planning to delay budget until this November. Those who waits for tax reduction may need to wait until next year to buy a new ride.

[Pericles]

http://www.lankadeepa.lk/2010/04/26/front_news/04.htm

Government planning to delay budget until this November. Those who waits for tax reduction may need to wait until next year to buy a new ride.

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.

[Chris0628]

USA - Land of the Free and Home of the Brave

Sri Lanka - Impossible is nothing

[kaushama]

Is there a need of a budget for this? Inside sources (Treasury) indicate they have already taken a decision to reduce the tax. And will do it soon it seems!

[rangerover]

Is there a need of a budget for this? Inside sources (Treasury) indicate they have already taken a decision to reduce the tax. And will do it soon it seems!

I presume the supplementary budget would reduce duty, as income from such a reduction is vital for the government

[DevakaC]

I presume the supplementary budget would reduce duty, as income from such a reduction is vital for the government

Yes, but they will also think about the trade deficit and foreign exchange outflow that could result in an influx in demand in motor cars all of a sudden.

My personal opinion is, yes they will reduce duty that is close to 400% by about 10-15% nothing close to what we would like to. Or they will likely have a clause with engine capacity, putting 1500 CC and below cars in a smaller tax bracket. At least a considerable decrease in duty for dual purpose, heavy duty vehicles would be helpful since we are in a stage of development right now. Until a gazette notification is issued with this regard lets await with patience.

[Ripper]

Yes, but they will also think about the trade deficit and foreign exchange outflow that could result in an influx in demand in motor cars all of a sudden.

My personal opinion is, yes they will reduce duty that is close to 400% by about 10-15% nothing close to what we would like to. Or they will likely have a clause with engine capacity, putting 1500 CC and below cars in a smaller tax bracket. At least a considerable decrease in duty for dual purpose, heavy duty vehicles would be helpful since we are in a stage of development right now. Until a gazette notification is issued with this regard lets await with patience.

yeah....this is my guess too.

I dont think the government will have huge tax cuts and whatever tax cut would most likely apply to brand new vehicles...

So there wont be a lot to expect

[Pericles]

USA - Land of the Free and Home of the Brave

Sri Lanka - Impossible is nothing

We don't need to steal the Adidas marketing slogan. We already have "Land like no other"

Is there a need of a budget for this? Inside sources (Treasury) indicate they have already taken a decision to reduce the tax. And will do it soon it seems!

Budgets aren't needed just to deal with tax rates, the more important component is giving money to various ministries, depts, councils, etc

[madmax]

USA - Land of the Free and Home of the Brave

Really? Where do people like cowboy Bush fit into this?

[racerx]

Can anyone recall in the history of SL has the duty rate for cars gone down? Common sense would go against a duty reduction. THE IMF is hanging over our heads and not releasing money unless we change our budget to increase revenue. The used car sales would slow. Why would you buy a used car when you can get a new car for cheaper. and there would be more money leaving our economy going to japan china and Europe. But then SL is not governed on common sense.

[VWvortex]

Can anyone recall in the history of SL has the duty rate for cars gone down? Common sense would go against a duty reduction. THE IMF is hanging over our heads and not releasing money unless we change our budget to increase revenue. The used car sales would slow. Why would you buy a used car when you can get a new car for cheaper. and there would be more money leaving our economy going to japan china and Europe. But then SL is not governed on common sense.

I don't quite get what you are saying here.

IF the tax is reduced and imports go up, YES the government revenue will increase through taxation. But with the higher foreign currency outflow the trade deficit may also increase.

[Chris0628]

We don't need to steal the Adidas marketing slogan. We already have "Land like no other"

Budgets aren't needed just to deal with tax rates, the more important component is giving money to various ministries, depts, councils, etc

"Land like no other" ???...... yeah... lots BS stuff than what we like to admit ....