Vehicle Import Taxes Reduced To 25% What Will This Do To The Market?

[chew]

I am about to buy an unregistered vehicle. Will this reduction be effective soon? How much it will be reduced from a 3 million car?

Edited November 22, 2010 by chew

[SeanD]

The import tax is just one of many taxes imposed on cars. I don't expect it will do anything to the price.

[Gayan Weerakoon]

This is for transport vehicles so it wont affect cars more like buses and vans....

[VWvortex]

This is probably the customs duty which is at 30% currently. So it will be a reduction of 5%.

[chew]

Yeah it is only for Passenger vehicles. Sorry about this

[Gayan Weerakoon]

Revenue license to be increased by 10%

[luckyd]

This is probably the customs duty which is at 30% currently. So it will be a reduction of 5%.

Is it "to" 25% or "by" 25%?

Anyway "passenger Transport" vehicles can not mean cars, right?

[Sumiya]

Is it "to" 25% or "by" 25%?

Anyway "passenger Transport" vehicles can not mean cars, right?

Hi Guys

No Cars at all, and Vans which are registered as duel purpose will not fall into this category i guess.

thanks

regards

sumith

[poscher]

good thing that there was no increase on tax....

also what about hybrids... did they remove taxes or just VAT?

[Galle]

Is it "to" 25% or "by" 25%?

Anyway "passenger Transport" vehicles can not mean cars, right?

WHY NOT ??, Cars also should be passenger Transport vehicles.

Lorry, Tractor may exclude.

[Sumiya]

WHY NOT ??, Cars also should be passenger Transport vehicles.

Lorry, Tractor may exclude.

Nope Not , even thought they use to transport by registration they will not fall into this category

thanks

regards

sumith

[lexi]

from the what i heard in the budget speech there is reduction on the below

VAT from 20% to 12%

NBT - from 3% to 2%

Regional infrastructure development levy (RIDL) - from 5% to nil

Social responsibility levy (SRL) - from 2% to nil

All above taxes are applied on vehicles

so there will be a sizable reduction in vehicle prices after January 2011

Edited November 22, 2010 by lexi

[mdsjw03]

from the what i heard in the budget speech there is reduction on the below

VAT from 20% to 12%

NBT - from 3% to 2%

Regional infrastructure development levy (RIDL) - from 5% to nil

Social responsibility levy (SRL) - from 2% to nil

so there will be a sizable reduction in vehicle prices after January 2011

Now i will buy a honda CRZ hybrid

[hyacc]

I also propose to reduce duties and taxes on passenger transportation vehicles by 25 percent. I propose to exempt the importation of electric and hybrid vehicles from Excise Tax and VAT in order to promote environmental friendly tourism.

http://www.adaderana.lk/budget/budget_speech.pdf

Edited November 22, 2010 by hyacc

[SREE]

does any one have a definition to "Passenger vehicle" ?

[hyacc]

Revised Depreciation Table for Used Motor Vehicles

Previous Depreciation Table.

Edited November 23, 2010 by hyacc

[neilw]

Is there any effect on a 990cc car?

[mdsjw03]

Revised Depreciation Table for Used Motor Vehicles

do not lie man !!!!!!!!!!

[hyacc]

do not lie man !!!!!!!!!!

This is from http://www.adaderana.lk/budget/budget_speech.pdf pdf page 69.

http://www.treasury.gov.lk/docs/budget2011/budgetspeech2011-sin.pdf page 57

Edited November 22, 2010 by hyacc

[mdsjw03]

do not lie man !!!!!!!!!!

this would mean a 2007 axio G would be 3.7 Mil

Allion 4M

[mdsjw03]

This is from http://www.adaderana.lk/budget/budget_speech.pdf pdf page 69.

http://www.treasury.gov.lk/docs/budget2011/budgetspeech2011-sin.pdf page 57

is this for commercial / private?

[mdsjw03]

is this for commercial / private?

what type of vehicles fall under these sections ??

[hyacc]

is this for commercial / private?

This time same rate for all. Earlier there was a separate value for motor cars.

Here's the old one

http://www.customs.gov.lk/news/VEHICLE.pdf

Edited November 22, 2010 by hyacc

[lexi]

So if all of the proposed amendments go ahead this is how the total tax rate going to stand for each category

petrol

< 1000cc - 68 % of CIF value

>1000cc < 1600cc - 88%

>1600cc < 3000cc - 108%

>3000cc - 135%

Diesel

< 1600cc - 135% of CIF value

>1600cc < 2000cc - 185%

>2000cc <2500cc - 196%

>2500cc - 210%

Edited November 23, 2010 by lexi

[Sifaan]

from the what i heard in the budget speech there is reduction on the below

VAT from 20% to 12%

NBT - from 3% to 2%

Regional infrastructure development levy (RIDL) - from 5% to nil

Social responsibility levy (SRL) - from 2% to nil

All above taxes are applied on vehicles

so there will be a sizable reduction in vehicle prices after January 2011

Does it say anywhere that vehicle VAT is going to reduce?

The only part I saw about VAT reduction 20% -> 12% was for financial services - but at least if you take a lease then the VAT you pay on the lease should reduce

edit: on page 53 it says "The present 20% rate will be reduced to 12%. Accordingly, there will be only one rate

applicable other than the Zero Rate. (Section 2 of the Act will be amended)."

Edited November 23, 2010 by Sifaan