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

[YALA]

Bet u got a yard full of cars!!

+1 i think so too

[wug]

Bet u got a yard full of cars!!

+++++1 I think too

[ransam]

tax has increased considerably so some car prices have shot to the moon, like before

Can u explain how the tax has increased. When the tax was reduced several months back, it took minimum two months for prices to decrease. How come u say that prices have shoot to the moon after budget which was presented two days earlier. Does government tax already imported cars? Grow up man.

[mdsjw03]

+++++1 I think too

my bad, for not being specific

Go to treasury site

there is a document Excise 2011

in it it says

when the engine capacity> 1500 ( All export corolla/civic/mazda3 falls under this) excise has increased

<1600 CC excise 17% -> 37%

>1600 CC excise 17% -> 47%

HS code 8703.23.5x

[AX1]

+100, and why do you repeat the same thing in 4 posts??? so emotional about a price dip?

[wug]

my bad, for not being specific

Go to treasury site

there is a document Excise 2011

in it it says

when the engine capacity> 1500 ( All export corolla/civic/mazda3 falls under this) excise has increased

<1600 CC excise 17% -> 37%

>1600 CC excise 17% -> 47%

HS code 8703.23.5x

I checked it. you are correct. but i couldn't find the value of percentage.

http://www.treasury.gov.lk/docs/budget2011/gazzets-fpd/1680-22/Excise-excemption-2011-sin.pdf

[mdsjw03]

+++++1 I think too

Edited November 24, 2010 by mdsjw03

[jimzum]

Anyone can confirm about the hybrid tax? Honda Civic hybrid 2008 CIF is around SLR 1.8 million. any idea about the tax?

[mdsjw03]

My bad, for not being specific

I was refering to brand new cars via Local Agents (MAZDA/CIVIC/Corolla)

government has changed the excise duty, go to treasury site, there is a document called excise2011. This was not part of the budget speech.

HSCODE - 8703.5x

engine capacity>1500CC , less than 1600CC Excise 17% -> 37%

engine capacity>1600CC , less than 2000CC Excise 27% -> 47%

But i would say this is a superb decision. Since engines with more than 1500CC consume more petrol, more pollution

So well Done MR. So if this is the case this shows our government is not bad after all.

This is the way to go !!!!!!!!!!!!!!!!!!!!!!!!!!

[seeker]

They have increased the tax to compensate for depreciation

Can you please explain how it has gone up? Do you have the final tax table, which the customs is expected to get?

General understanding is that, the effective rate does come down slightly for the given classifications

[VWvortex]

Excise exception for following type of vehicle as well ...this might be good for jeeps like 70 series cruisers..

8703.32.71

Vehicles for the transport of 7 or more persons (adults) including the driver, with non-monocoque body bolted on ladder type heavy duty chassis, with permanent four-wheel drive capability, and a total pay load ) of persons and cargo) of over 800 Kgs.

[hyacc]

http://www.customs.gov.lk/news/Excise2011.pdf

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

http://www.treasury.gov.lk/docs/budget2011/ttipd/DepriciationTable.pdf

Edited November 25, 2010 by hyacc

[Pericles]

Excise exception for following type of vehicle as well ...this might be good for jeeps like 70 series cruisers..

8703.32.71

Vehicles for the transport of 7 or more persons (adults) including the driver, with non-monocoque body bolted on ladder type heavy duty chassis, with permanent four-wheel drive capability, and a total pay load ) of persons and cargo) of over 800 Kgs.

I think that translates into Rexton. If it has a ladder frame.

[mdsjw03]

I think that translates into Rexton. If it has a ladder frame.

Any way, Cess is 10%, vehicle classification changed, new taxes => no benefit => good, from a point of view of an existing car owner

So the government has kept its word on tax

[mdsjw03]

Any way, Cess is 10%, vehicle classification changed, new taxes => no benefit => good, from a point of view of an existing car owner

So the government has kept its word on tax

From the point of view from a bank, there would have been bad debts had tax were reduced

Before commenting please check customs site/finance site

[lexi]

Anyone can confirm about the hybrid tax? Honda Civic hybrid 2008 CIF is around SLR 1.8 million. any idea about the tax?

for Hybrid vehicles..

Exice duty - nil

VAT -nil

RIDL - nil

SRL-nil

NBT -2%

Custom Duty - 15%

PAL - 5%

so ur CIF value 1.8% *+ 22.6% = 2.2M (price after total tax)

[mdsjw03]

for Hybrid vehicles..

Exice duty - nil

VAT -nil

RIDL - nil

SRL-nil

NBT -2%

Custom Duty - 15%

PAL - 5%

so ur CIF value 1.8% *+ 22.6% = 2.2M (price after total tax)

I would not recommend buying a hybrid because,

1. Battery life depends on the climate, battery life will reduce in hot climates

2. Battery replacement cost is close to 800k (every 160k / 10 years lifetime in US), implying no secondhand value

3. Sluggish pickup

4. No spare part availability for the engine

5. Difficult to do regular service

If i remember correctly Toyota Prius was offered by toyota lanka some time back, but they stopped it for unknown reasons.

[SREE]

(may this is a silly question..)can some expert pls explain what are hybrid vehicles mean? and how their performances in sri lanka? thanks..

[Buddhika M H]

for Hybrid vehicles..

Exice duty - nil

VAT -nil

RIDL - nil

SRL-nil

NBT -2%

Custom Duty - 15%

PAL - 5%

so ur CIF value 1.8% *+ 22.6% = 2.2M (price after total tax)

machan u sure on this?

if its so, many will get hybrids (and then sellers might say hybrids' prices have gone up in japan as the SL demand ) and think problem of spares, repairing knowledge & servicing will not be a much of a problem after a while.

[rangerover]

But i would say this is a superb decision. Since engines with more than 1500CC consume more petrol, more pollutionSo well Done MR. So if this is the case this shows our government is not bad after all.

This is the way to go !!!!!!!!!!!!!!!!!!!!!!!!!!

What the hell???

[Ripper]

(may this is a silly question..)can some expert pls explain what are hybrid vehicles mean?

heard of google?

[Pericles]

But i would say this is a superb decision. Since engines with more than 1500CC consume more petrol, more pollution

So well Done MR. So if this is the case this shows our government is not bad after all.

This is the way to go !!!!!!!!!!!!!!!!!!!!!!!!!!

Yeah, specially after building the high speed highways.

http://www.youtube.com/watch?v=dKTOyiKLARk

Now we can all burn massive amounts on fuel on the highways trying to keep up with the speed limit. Or bugger around at 40 in the center lane like so many are used to doing.

[RASKD]

for Hybrid vehicles..

Exice duty - nil

VAT -nil

RIDL - nil

SRL-nil

NBT -2%

Custom Duty - 15%

PAL - 5%

so ur CIF value 1.8% *+ 22.6% = 2.2M (price after total tax)

The same model Indian price is Indian Rs. 21.5 Lakhs ( Equivalent SL Rs 52 Lakhs).

refer this link

http://lifestyle.iloveindia.com/lounge/honda-civic-hybrid-2463.html

So no need to go for Axio, Allion

Go for Hybrid less than 50% of those vehicles.

[jimzum]

My clearing agent said they haven't received the required information for Hybrid Tax deduction. But he did confirmed cars below 1500cc has gone down by at least 200k.

[mdsjw03]

What the hell???

sorry mate, any person can change their own opinion. It is called democracy.

You better check with customs rates, you will be amazed how things have unfolded.

Some tax changes were not in the budget speech, ex:- cess/excise.

One of the best budgets ever.. This time they have considered private sector as well.

Edited November 25, 2010 by mdsjw03