Import Tax Slashed By 50%

hyacc · August 20, 2010

Last week I sold my oil burning petrol drinking Hyundai Accent YOM2000 car for 925,000 which I bought for 975,000 5.5 years ago

Rohnd · August 20, 2010

harshansenadhir said:
Think logically friends. Although tax reduction is good for the government income in terms of volume based tax income, there are serious adverse impacts of this move by letting huge amount of foreign reserves to flow out of the country. Tax income is again from internal money circulation and therefore net effect will be zero. (no gain of foreign reserves by tax income). Further, the demand for expensive, luxury vehicles were shoot up because of the savings/price drop for said category is higher, say few millions. This makes more foreign reserves to flow out as price tag of luxury vehicles are exorbitantly high. Therefore, there's no room or very very less room for government to further decrease taxes and motivate vehicle imports, instead they might tighten up screws again to stop/control this foreign currency outflow.

Yes, this is correct, It brings Petty cash for the government .This topic(Import tax Slashed by 50%) has become a total lie. Where & what is 50%.

This is a country where people have to pay excise duty on hard metals.

What stupid taxation incur in this country !. CD ,VAT, PAL, SRL , ED ,NBT ,Inland Revenue Tax,PAYE , VARIPANAM , MANY MORE TO COME

No need to compare car prices OR any other commodity prices . Acceprt as it is. Unless migrate,

if you are not willing or live with lie.

JAFF · August 20, 2010

Rohnd said:
Yes, this is correct, It brings Petty cash for the government .This topic(Import tax Slashed by 50%) has become a total lie. Where & what is 50%.
This is a country where people have to pay excise duty on hard metals.

What stupid taxation incur in this country !. CD ,VAT, PAL, SRL , ED ,NBT ,Inland Revenue Tax,PAYE , VARIPANAM , MANY MORE TO COME

No need to compare car prices OR any other commodity prices . Acceprt as it is. Unless migrate,

if you are not willing or live with lie.

man dont put the blame on the country. blame the people who are ruling this country

kalana · August 20, 2010

JAFF said:
man dont put the blame on the country. blame the people who are ruling this country

+1

zerocool · August 20, 2010

JAFF said:
man dont put the blame on the country. blame the people who are ruling this country

If you think like that we have to blame the people who voted for them all these years right? so in the end we have to blame ourselves.

Rohnd was right, if you don't like it here migrate to [insert whatever the country you think is best here ].

isurujosh · August 20, 2010

AsankaAuto said:
Car prices will certainly go down in near future as more and more ppl start to import vehicles on their own (personally) without buying at a high price from car sales. So car sales wil have to reduce their prices to a reasonable level.
One of my friend just cleared a toyota allion NZT260 2007 black color car. As he told the total cost hasn't exceeded 4.4million.

my friend too cleared his G grade allion a15 (260) few weeks back for around about the same price. lovely car, as spacious as cefiro and as economical as any 1.5L car. was worth every penny for 4.3 mil.

AsankaAuto · August 20, 2010

So it's a good sign for ppl who are waiting to buy allion (2007/2008) cars. They will soon become well below 5mn.

Also the Japanese YEN will depreciate in coming days as Japanese government is considering to lower itz value. It will also affect the cost of imports and force prices to go down.

Letz hope for the BEST

xXx · August 20, 2010

arunajn said:
It seems some car Importers in this forum try to manipulate the situation. Even if the Car Importer or an individual, there won't be any difference in the VAT effect. As, ultimately buyer has to bear the VAT. Only difference will be BTT & the Finance Cost. I don't think those cost will be around 3-4 lacks???? Also if you try to find, in some reliable websites still the Belta will be around 1.1 Mn...But Belta 1.3cc will be around 1.4Mn...
Therefore if you are going to import a vehicle personally you can have a benefit of 3-5 lacks minimum.

Therefore I request the forum members who are willing to import vehicles don't depend on the statements of others...Try to find the accurate information instead of depend on unknown peoples opinion. (Sometime it may be a Car Importer's opinion.)

Dude before you try to educate others educate yourself. Do you know the concept behind VAT? VAT supposes to have a cascading effect. When the importer pay the full VAT amount to the government the first buyer can claim some of that VAT and in return he can pass that price advantage to the second buyer. This example doesn’t quite apply to car imports but it applies to commodities specially when there's a wholesaler involved.

If you haven't noticed VAT is not a single static percentile like GST. When a car sale import a car they pay a higher percentile of VAT compared to a personnel import so he can pass some of the VAT to buyers who are financing their purchase via a lease.

So now that you learnt this from me who is unknown to you, feel free to discard this info (according to your theory)

xXx · August 20, 2010

harshansenadhir said:
Think logically friends. Although tax reduction is good for the government income in terms of volume based tax income, there are serious adverse impacts of this move by letting huge amount of foreign reserves to flow out of the country. Tax income is again from internal money circulation and therefore net effect will be zero. (no gain of foreign reserves by tax income). Further, the demand for expensive, luxury vehicles were shoot up because of the savings/price drop for said category is higher, say few millions. This makes more foreign reserves to flow out as price tag of luxury vehicles are exorbitantly high. Therefore, there's no room or very very less room for government to further decrease taxes and motivate vehicle imports, instead they might tighten up screws again to stop/control this foreign currency outflow.

Good point machang. Been a slow day thought to expand on your comment a bit.

My belief is the sudden influx of demand for cars are from the people who put off buying an unreg car in the last half a decade. So if this tax structure continues we are sure to see a decrease in demand in the future. So there won't be any extra pressure on the foreign reserves. It’s not as if car imports were at a halt during the past couple of years.

Saying that it is really hard to predict actions of this regime. They don't seem to operate with a set plan. Their strategy has always been pasting a plaster when they see a crack. Government intention in reducing taxes is still unclear (atleast for me). As some of you have expressed it could be because the treasury needed a bit of an injection, or is it one of IMF's conditions.

If it is the first reason, then when the target is meat taxes will be increased. If it’s the latter then comes the question to what extend will GOSL cooperate with IMF in setting economic goals. Just as IMF insisted on a streamlined tax structure another condition was a cut back on government expenditure which includes a bloated public sector and subsidies. So to what extend is Chinthanaya willing to cut these at the expense of his popularity? Or was this tax cut to please the IMF temporarily to buy some time.

My point been without knowing the intentions behind this tax cut it is hard to predict its future.

kaushama · August 26, 2010

Just heard that car taxes will come down further and Gov is calculating how to do it. This was told by Dr. Jayasundara it seems.

And,

http://www.lankabusinessonline.com/fullsto...?nid=1470785646

Ripper · August 26, 2010

kaushama said:
Just heard that car taxes will come down further and Gov is calculating how to do it. This was told by Dr. Jayasundara it seems.
And,

http://www.lankabusinessonline.com/fullsto...?nid=1470785646

well at least in that article in doesn't say taxes will come down further.

just says that car prices would fall even more when more and more new cars come into the market...

typical supply vs demand scenario

AsankaAuto · August 26, 2010

Please read today's Lankadeepa news paper before arguing....

jaga · August 26, 2010

AsankaAuto said:
Please read today's Lankadeepa news paper before arguing....

What it says

AsankaAuto · August 26, 2010

it has clearly mentioned that taxes will be further reduced... So there's nothing to argue....

Gayan Weerakoon · August 26, 2010

Yes its in the front page of the Lankadeepa news paper

Watchman · August 26, 2010

I really dont see a point in you guys going "taxes are going down", "no taxes are going up" "nono taxes are going down"...

The person who made the statement really doesnt make a difference.. our country at present has no sense of accountability. Anyone can make a statement immaterial of its truth and not be worried about having to face repercussion.

Example1: Health minister "people die in our country. we cant stop that. Why are we being blamed for that? the reason people get dengue is cos girls wear short skirts and expose skin for mosquitoes to bite"

Example2: president "I cant afford to give 10k pay hikes for govt employees.. i wont like.. But i will surely give a 2.5k rise in my next budget".. so where was it?

Example3: some police officer on a radio program (as pointed out by someone on the forum) "a 70% tint is allowed on the front" (or something to that nature...

So lesson: Don't go listening to self proclaimed 'experts' on taxation in SL; you're wasting your time. Tax cuts will come if (when) they come.. jsut dont hold your breath for it.

Pericles · August 26, 2010

+1 to what Dilesh said.

Ripper · August 26, 2010

Pericles said:
+1 to what Dilesh said.

ditto that. i think especially the newbies tend to get excited a little too soon

Pericles · August 26, 2010

Damn this thread is even faster growing than post whoring. Coming up on 900 posts? Crazy!

zerocool · August 26, 2010

Dilesh said:
I really dont see a point in you guys going "taxes are going down", "no taxes are going up" "nono taxes are going down"...
The person who made the statement really doesnt make a difference.. our country at present has no sense of accountability. Anyone can make a statement immaterial of its truth and not be worried about having to face repercussion.

Example1: Health minister "people die in our country. we cant stop that. Why are we being blamed for that? the reason people get dengue is cos girls wear short skirts and expose skin for mosquitoes to bite"

Example2: president "I cant afford to give 10k pay hikes for govt employees.. i wont like.. But i will surely give a 2.5k rise in my next budget".. so where was it?

Example3: some police officer on a radio program (as pointed out by someone on the forum) "a 70% tint is allowed on the front" (or something to that nature...

So lesson: Don't go listening to self proclaimed 'experts' on taxation in SL; you're wasting your time. Tax cuts will come if (when) they come.. jsut dont hold your breath for it.

+1 and totally agree.

harshansenadhir · August 26, 2010

Dilesh said:
I really dont see a point in you guys going "taxes are going down", "no taxes are going up" "nono taxes are going down"...
The person who made the statement really doesnt make a difference.. our country at present has no sense of accountability. Anyone can make a statement immaterial of its truth and not be worried about having to face repercussion.

Example1: Health minister "people die in our country. we cant stop that. Why are we being blamed for that? the reason people get dengue is cos girls wear short skirts and expose skin for mosquitoes to bite"

Example2: president "I cant afford to give 10k pay hikes for govt employees.. i wont like.. But i will surely give a 2.5k rise in my next budget".. so where was it?

Example3: some police officer on a radio program (as pointed out by someone on the forum) "a 70% tint is allowed on the front" (or something to that nature...

So lesson: Don't go listening to self proclaimed 'experts' on taxation in SL; you're wasting your time. Tax cuts will come if (when) they come.. jsut dont hold your breath for it.

very well said Dilesh, Further, if someone to wait for ages to purchase a vehicle, say until taxes goes down, I bet that person is not buying a vehicle to satisfy a need. If you have the need, you'll purchase it outright rather than waiting for months and years compromising the need.

MasterDon · August 26, 2010

well said dilesh.

Pericles said:
Damn this thread is even faster growing than post whoring. Coming up on 900 posts? Crazy!

and more thread views too!

TharakaWi · August 26, 2010

Dilesh said:
I really dont see a point in you guys going "taxes are going down", "no taxes are going up" "nono taxes are going down"...
The person who made the statement really doesnt make a difference.. our country at present has no sense of accountability. Anyone can make a statement immaterial of its truth and not be worried about having to face repercussion.

Example1: Health minister "people die in our country. we cant stop that. Why are we being blamed for that? the reason people get dengue is cos girls wear short skirts and expose skin for mosquitoes to bite"

Example2: president "I cant afford to give 10k pay hikes for govt employees.. i wont like.. But i will surely give a 2.5k rise in my next budget".. so where was it?

Example3: some police officer on a radio program (as pointed out by someone on the forum) "a 70% tint is allowed on the front" (or something to that nature...

So lesson: Don't go listening to self proclaimed 'experts' on taxation in SL; you're wasting your time. Tax cuts will come if (when) they come.. jsut dont hold your breath for it.

Agree wit u 100%