Import Tax Slashed By 50%

Saturn · June 2, 2010

Ekendra Edrisinghe said:
I got this information from a Bank. Not sure if its correct though.

Damn! people who bought new cars recently aren't going to be too happy, not to mention car stores with old stock

da_kool_guy · June 2, 2010

Edward said:
Hi Guys,
There is a talk going on, this is not going to be forever. & they may change this to the previous way in the next budget.

You are correct.

JAFF · June 2, 2010

today i called swid#sh trading and asked about the price reduction of vehicle, they said that the prices of vehicles will fall by 1/3 of the current price

samanp · June 2, 2010

As I can remember it is not possible to order cars that are older than 3 years or so. In that case do you guys think second hand car market prices will drop significantly?

Rebel · June 2, 2010

Buyers have been waiting for this for sometime now. They will wait for a tangible reduction and then look to buy. With no demand for second hand cars due to this prices have to go down as working capital issues arise for car sales. And they are the backbone of the 2nd hand car mkt. The stagnant buying will also affect the individual sellers.

Another argument is: not everyone can afford the price tag of a brand new vehicle so the prices of the 2nd hand cars will maybe drop to a level where there is a reasonable difference between 2nd hand and unregistered vehicles. Assuming the same drop in prices are applicable for the recons.

If the 121 mkt crashes well thats great! (joking) cos there's one on the AL ads for 4.8!!!

Then again there are people who can actually afford a new car and these guys are gonna take a marginal hit on the current cars in favor of owning a newer car, lower(or nil) maintenance etc. This again will hit the market with a downward pressure

Anyways thats my opinion

Edited June 2, 2010 by Rebel

SeanD · June 2, 2010

Seems like even the dealers don't know what the hell is going on: http://www.island.lk/2010/06/03/news1.html

Cos they don't know how this will affect the multiple taxes that are levied?

Devinda_Z · June 3, 2010

heard on the radio when the CMTA chairperson Zeenia Rasheed was being interviewed that the actualy duty component has increased from 28 to 30% and its only the excise duty that has come down.

total expected benefit to consumers would be about a 25% decrease in end price apparently - everyone is still awaiting the final costing formulation to be able to determine prices.

Marlons · June 3, 2010

Wonder for how long this will last, and what the government will do to collect the moneys that they are losing, what will they increase the tax on????

rangerover · June 3, 2010

Devinda_Z said:
heard on the radio when the CMTA chairperson Zeenia Rasheed was being interviewed that the actualy duty component has increased from 28 to 30% and its only the excise duty that has come down.
total expected benefit to consumers would be about a 25% decrease in end price apparently - everyone is still awaiting the final costing formulation to be able to determine prices.

This is what i heard as well. The intended price drop by the finance ministry was around the 25% mark for motor cars

isam · June 3, 2010

Marlons said:
Wonder for how long this will last, and what the government will do to collect the moneys that they are losing, what will they increase the tax on????

er... jacking up the prices of fuel???

Yasitha Karunaratne · June 3, 2010

Marlons said:
Wonder for how long this will last, and what the government will do to collect the moneys that they are losing, what will they increase the tax on????

Case of volumes I believe. Classical case of pricing theory.

At the moment car sales are tanking, so with low volumes Govt gets a low revenues via duties. New changes should rejuvenate the market leading to increased sales. This means more volumes. Should volumes exceed pre-duty change times then the Govt earns more. Its a case of dropping prices to stimulate demand. Basically Govt is reducing the "price" of our right to own a vehicle in SL.

If anyone has access to this data, volumes of cars imported into SL annually for about 5-6 years we could get a better idea how much Govt would benefit.

Secondly more vehicles on the road = petrol consumption goes up. With the tax on petrol this means more taxes for Govt. This assumes price of petrol stays same - unlikely as it is subsidized.

Second hand market might see a drop over the course of 2-3 months. Basically everyone is waiting for Govt to gazette this change.

In any case I for one am thankful I sold my Ford Laser a year back!

podilamaya · June 3, 2010

mistaken_ID · June 3, 2010

podilamaya said:

some sought of a relief..

lasi · June 3, 2010

rangerover said:
This is what i heard as well. The intended price drop by the finance ministry was around the 25% mark for motor cars

Pericles · June 3, 2010

Don't suppose either of you three have a source for this?

I, for one am delighted! I wanted a new monitor for graphics work, a major price cut would be awesome! Maybe I'll be able to afford a good one now

Yasitha Karunaratne · June 3, 2010

Pericles said:
Don't suppose either of you three have a source for this?
I, for one am delighted! I wanted a new monitor for graphics work, a major price cut would be awesome! Maybe I'll be able to afford a good one now

Uploaded with ImageShack.us

Feast ur eyes on the drop!! 71%

No wonder they decided to drop the rates. Source for this and the above report is from John Keells Stockbrokers.

Edited June 3, 2010 by Yasitha Karunaratne

L board · June 3, 2010

I think AL is having a good time because so many are desperate to sell now

sharky · June 3, 2010

L board said:
I think AL is having a good time because so many are desperate to sell now

I guess if you've been living in a cardboard box all this time you might want to buy a car at the prices seen on some of those ads. The big question is when will the 2nd hand market respond?

Sumiya · June 3, 2010

Hi Guys

MY GUESS IS THAT THIS IS ONLY A POLITICAL DRAMA TILL THE NEXT BUDGET,

Thanks

Regards

sumith

kalana · June 3, 2010

what will be the price of a alto with this tax reduction ?

harshansenadhir · June 3, 2010

sharky said:
The big question is when will the 2nd hand market respond?

when the unreg can be bought by stretching 0.5 mil more than the reged specimen. Having said that, most of the transactions takes place below the 3.0 mil mark. What's available to buy unreg by stretching 0.5 mil more that is at 3.5 mil range is the question.

harshansenadhir · June 3, 2010

royalkalana said:
what will be the price of a alto with this tax reduction ?

have to wait till monday. Rang the agents yesterday and they were not ready to disclose any new price tags and said to call back on monday.

Bugatti · June 3, 2010

harshansenadhir said:
have to wait till monday. Rang the agents yesterday and they were not ready to disclose any new price tags and said to call back on monday.

What u lookinat...? 207..? 407...?

Sumiya · June 3, 2010

Hi Guys

I am feeling so sorry most of the people are dreaming to buy new cars etc etc , i don't know why they don't understand this,

they some how will charge in any other way the amount that they slashed ,Finally WE ARE LOOSERS the People who will win are POLITICIANS.I am not taking any politics here. but it is the reality.

For an Example THEY REDUCE VEHICLE TAX BY 50% AND INCREASE AUTO SPARE BY 100% in next few months.

Thanks

Regards

sumith

lasi · June 3, 2010

Sumiya said:
Hi Guys
MY GUESS IS THAT THIS IS ONLY A POLITICAL DRAMA TILL THE NEXT BUDGET,

Thanks

Regards

sumith

I think Gov. can not expect much revenue by slashing duty for only 6 month. It will last at least 1 year. Because it would be a slow process at the begining. BTW, Agent are not yet ready to disclose their pricing and buyers should wait untill new stocks of unreg. are available.