Will The Government Increase Tax ? Is There Any Benifit For The Tax Revenue?

[mdsjw03]

Will the government increase tax?

There are rumors that government is going to increase TAX, I do not know whether there is a truth in it.

From what I gather vehicle TAX revenue has increased massively. Bank loans has increased, bank profits has increased. Vehicle importers profit has increased, more income tax to government.

But the second hand vehicle market has not benefited, largely due to speculations and appreciation of YEN. People outside Colombo and other main cities, are yet to benefit. But in time they will get the benefit, still not enough time to propagate the effect to the common man.

By increasing TAX, will there be any advantage for the government ? It will go to the situation before.

Any thoughts?????????

[Sumiya]

Will the government increase tax?

There are rumors that government is going to increase TAX, I do not know whether there is a truth in it.

From what I gather vehicle TAX revenue has increased massively. Bank loans has increased, bank profits has increased. Vehicle importers profit has increased, more income tax to government.

But the second hand vehicle market has not benefited, largely due to speculations and appreciation of YEN. People outside Colombo and other main cities, are yet to benefit. But in time they will get the benefit, still not enough time to propagate the effect to the common man.

By increasing TAX, will there be any advantage for the government ? It will go to the situation before.

Any thoughts?????????

Hi Mate

Call Ajith Nivad Cabral at Central bank or Finance Minister machan

call Gov Information or 119 and get these peoples contact no.

since this is an automotive forum we don't carry these info

thanks

regards

sumith

Edited November 16, 2010 by Sumiya

[Rebel]

ha ha good one

[mdsjw03]

Hi Mate

Call Ajith Nivad Cabral at Central bank or Finance Minister machan

call Gov Information or 119 and get these peoples contact no.

since this is an automotive forum we don't carry these info

thanks

regards

sumith

Since this is an automotive forum just wanted to discuss the impact of tax increase. not other crap.

[Pericles]

But the second hand vehicle market has not benefited, largely due to speculations and appreciation of YEN. People outside Colombo and other main cities, are yet to benefit. But in time they will get the benefit, still not enough time to propagate the effect to the common man.

Depends on your point of view. When the market comes down, the buyer might benefit, but the seller will not. To say People are yet to benefit is wrong. Sellers are still benefiting despite the tax changes.

[mdsjw03]

Depends on your point of view. When the market comes down, the buyer might benefit, but the seller will not. To say People are yet to benefit is wrong. Sellers are still benefiting despite the tax changes.

it all will take some time to propagate...

[mdsjw03]

Now people are trying to maximize profit, prices have not settled down.

Edited November 16, 2010 by mdsjw03

[mdsjw03]

Depends on your point of view. When the market comes down, the buyer might benefit, but the seller will not. To say People are yet to benefit is wrong. Sellers are still benefiting despite the tax changes.

I was referring to people outside of mainly colombo.

[Pericles]

I was referring to people outside of mainly colombo.

Implying that buyers inside Colombo are benefiting from a price drop on the second hand market? Don't think thats the case.

[isurujosh]

Will the government increase tax?

There are rumors that government is going to increase TAX, I do not know whether there is a truth in it.

From what I gather vehicle TAX revenue has increased massively. Bank loans has increased, bank profits has increased. Vehicle importers profit has increased, more income tax to government.

But the second hand vehicle market has not benefited, largely due to speculations and appreciation of YEN. People outside Colombo and other main cities, are yet to benefit. But in time they will get the benefit, still not enough time to propagate the effect to the common man.

By increasing TAX, will there be any advantage for the government ? It will go to the situation before.

Any thoughts?????????

interesting discussion.

i am personally of the opinion that the goverment does not give a damn shit for the motorists. the only reason behind the tax reduction was the prospect of better revenue which they got. now that the market is active again i suppose a moderate increase in taxes would still increase total revenue. in that sense it makes sense for the government to increase the excise duty that will increase not only income from car imports but imports at large that are on a steady rise. again simple demand and suppy theory apply here. the percentage increase in price/tax will surpass the reduction in demand/quantity. meaning more revenue to government coffers. who cares about those stupid common low lives?

[mdsjw03]

interesting discussion.

i am personally of the opinion that the goverment does not give a damn shit for the motorists. the only reason behind the tax reduction was the prospect of better revenue which they got. now that the market is active again i suppose a moderate increase in taxes would still increase total revenue. in that sense it makes sense for the government to increase the excise duty that will increase not only income from car imports but imports at large that are on a steady rise. again simple demand and suppy theory apply here. the percentage increase in price/tax will surpass the reduction in demand/quantity. meaning more revenue to government coffers. who cares about those stupid common low lives?

mate, i think u r bit mistaken. most people got loans. if they increase the price people will not go for higher loans, so the banks will get a hit. People who went for allions will go for axios. TAX revenue will not change. But banking sector will get a hit as the loan amounts will change.

You cannot apply simple elasticity laws here. As most of them neglect other factors...

The equilibrium has not reached........... yet

Rule of thumb - NEVER CHANGE SOME THING THAT WORKS !!!!!!!!!!!!!!!!!!!!!!!!!

Edited November 16, 2010 by mdsjw03

[Watchman]

mate, i think u r bit mistaken. most people got loans. if they increase the price people will not go for higher loans, so the banks will get a hit. People who went for allions will go for axios. TAX revenue will not change. But banking sector will get a hit as the loan amounts will change.

What kind of screwed up logic is that! Tax income from an Allion is obviously higher than from an axio. SO obviously if a person buying an Allion would end up buying an axio the government earns less. You contradict your OWN logic hat you applied to bank loans

[isurujosh]

if they increase the price people will not go for higher loans, so the banks will get a hit. People who went for allions will go for axios. TAX revenue will not change. But banking sector will get a hit as the loan amounts will change.

You cannot apply simple elasticity laws here. As most of them neglect other factors...

The equilibrium has not reached........... yet

Rule of thumb - NEVER CHANGE SOME THING THAT WORKS !!!!!!!!!!!!!!!!!!!!!!!!!

scenario 1 (axio becomes as expensive as an allion with revised taxes): a person who'd otherwise buy an allion may buy an axio paying the same amounf of money. then kindly explain how this process decrease the bank loan or tax revenue. i see the bank loan staying steady and goverment earning more money at the expense of inferior quality of life for the low life ordinary motorist.

scenario 2 (axio becomes more expensive but not as much as an allion, but allion is much more expensive too now): there's no way the buyer gonna give in and see the fortunate neigbor who bought the allion with older taxe rates. buyer may pull all his socks up and buy the damn allion!!! that would actually increase bank loan and tax revenue too.

i can't see any other scenario if the tax increase is moderate as suggested. however i am not a righteous one, so i could be wrong too.

[mdsjw03]

scenario 1 (axio becomes as expensive as an allion with revised taxes): a person who'd otherwise buy an allion may buy an axio paying the same amounf of money. then kindly explain how this process decrease the bank loan or tax revenue. i see the bank loan staying steady and goverment earning more money at the expense of inferior quality of life for the low life ordinary motorist.

scenario 2 (axio becomes more expensive but not as much as an allion, but allion is much more expensive too now): there's no way the buyer gonna give in and see the fortunate neigbor who bought the allion with older taxe rates. buyer may pull all his socks up and buy the damn allion!!! that would actually increase bank loan and tax revenue too.

i can't see any other scenario if the tax increase is moderate as suggested. however i am not a righteous one, so i could be wrong too.

Scenario 1 will never happen, AGENT CIF for AXIO is 1.65M Yen, Allion 1.8M Yen., same engine, same tax rate

Scenario 2 - misinterpreted, With high loans people are bit cautious,

Allion - 4.5 M, Axio G 4.3 M Axio X 3.9 M

If i had 4.3 Mil with 1.5 Mil - 2 Mil Loan now, i will buy an allion buy getting additional 200,000 some where.

if the tax increased by 10% => AXIO will be 4.5 Mil, Allion will be 4.8 Mil => No one would not go for allion since the loan amount will be high => hence they will go for the AXIO G or the AXIO X.

Edited November 17, 2010 by mdsjw03

[Sumiya]

Hi Guys

Copy Right Reserved for Auto Lanka Valuation Company Pvt Ltd

No Unauthorized extract please

thanks

regards

sumith

[Ripper]

These tax threads have brought out the brightest brains to the forum

[toyota sucks]

When the price of an axio x becomes the price of a axio g because of the tax increase

The tax the gov will get will be increased

eg - Calculation ( only figures)

axio G cif - 2.61mill LKR (1.8yen x 1.45)+ tax 2 mill = 4.61mill LKR

If axio X was 4.61 mill LKR

cif 2.32mill LKR(1.6 yen x 1.45) tax would be 2.29 mill LKR

So there will be more tax income for the gov

And if the guy want's a G the tax would be even greater

It is good because the money will be spent on the poor man's bread rather than the "mudalali's" rpm meter

but if this happened to an innocent fellow like me it would be a pitty

(Above figures are for demonstration purposes only don't ask me where to buy for this prices)

[mdsjw03]

When the price of an axio x becomes the price of a axio g because of the tax increase

The tax the gov will get will be increased

eg - Calculation ( only figures)

axio G cif - 2.61mill LKR (1.8yen x 1.45)+ tax 2 mill = 4.61mill LKR

If axio X was 4.61 mill LKR

cif 2.32mill LKR(1.6 yen x 1.45) tax would be 2.29 mill LKR

So there will be more tax income for the gov

And if the guy want's a G the tax would be even greater

It is good because the money will be spent on the poor man's bread rather than the "mudalali's" rpm meter

but if this happened to an innocent fellow like me it would be a pitty

(Above figures are for demonstration purposes only don't ask me where to buy for this prices)

FYI - AXIO X CIF= AXIO G CIF in sl

[SeanD]

Wtf is an Axio???

[Skyline R33]

Wtf is an Axio???

Sounds like something yummy!!!

[Gayan Weerakoon]

Axio is the most common car in Sri Lanka its made by Toyota and is the JDM model of the Corolla

You get more Axio's than 3 wheelers buses Motorbikes etc.....

[isurujosh]

Axio is the car bought by people who want to annoy,

1) those who can't afford it

2) among the ones who can afford it, the ones who can't mind their own effing business

Edited November 19, 2010 by isurujosh

[isurujosh]

...

It is good because the money will be spent on the poor man's bread rather than the "mudalali's" rpm meter

but if this happened to an innocent fellow like me it would be a pitty

(Above figures are for demonstration purposes only don't ask me where to buy for this prices)

i love the way you think.

[MkX]

Axio is the car bought by people who want to annoy,

1) those who can't afford it

2) among the ones who can afford it, the ones who can't mind their own effing business

[mdsjw03]

emmmmmmm, we are going off course