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Skyonline

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  1. The government has revised the luxury tax (LT) formula and is to introduce a LT based on the vehicle manufacturing cost in addition to custom duty if its manufacturing cost (Cost Insurance Freight/CIF value) exceeds Rs.3.5 million. Under this new formula, the LT vehicle import duty will be levied on the basis of engine capacity and LT tax on CIF value, informed official sources said. Revision of excise duty on motor vehicles and implementation of LT on luxury motor vehicles is expected to generate revenue of Rs.48 billion, a senior Treasury official said. The relevant circular on luxury tax amendment will be issued soon, he said. Earlier the LT on vehicles was based on engine capacity and now it will be changed to CIF value, he said adding that the government has decided to amend the luxury tax on motor vehicles to be based on price instead of engine capacity, specifying the vehicle categories which are exempt. As per the Finance Act 2018, the LT was applicable earlier on only three categories of vehicles, including petrol vehicles with cylinder capacity more than 1800 cc, diesel vehicles with cylinder capacity more than 2300 cc, and electric vehicles with more than 200kw power. But now all vehicles with a CIF value of Rs. 3.5 million or over will be subjected to an additional LT, he said. Vehicle Importers Association of Sri Lanka (VIASL) Chairman Ranjan Peiris said most of the vehicles used by motorists like Toyota Premier, Toyota Axio, Honda Vezel, Toyota CHR and Honda Grace come under the LT bracket. In accordance with the new tax, Rs. 1.2 million would have to be paid as LT for a vehicle with a 1,000cc engine capacity in addition to the manufacturing cost, he added. A member of the Ceylon Motor Traders Association said that it’s not fair to charge the same duty for a 2,000 cc Korean-made vehicle produced and purchased for US$20,000 and a European manufactured one with same engine capacity purchased at $35,000, under the earlier taxation system. Heeding to representations made by motor traders, the Finance Ministry has decided to amend the LT imposition reverting to the previous method of taxation on the price of the model. http://www.sundaytimes.lk/191027/business-times/vehicle-luxury-tax-revised-re-introducing-cif-value-based-taxation-375190.html
  2. The tax will no longer be charged on the engine size for vehicles below the capacity of 1,800cc, for petrol, 2,300cc for diesel and a 200 kiloWatt motor will not apply from November 01.
  3. Sri Lanka will charge a so-called luxury tax from high value cars and SUVs for which import letter of credit was opened after March 05, 2019 and the basis of engine capacity to charge taxes has been removed, the finance minister said. The luxury tax will be applicable to petrol and diesel cars and jeeps valued (CIF) over 3.5 million rupees, hybrids over 4.0 million rupees and electric vehicles over 6.0 million rupees. The tax will no longer be charged on the engine size for vehicles below the capacity of 1,800cc, for petrol, 2,300cc for diesel and a 200 kiloWatt motor will not apply from November 01. But letters of credit opened up to October 31 and imports cleared before April 21, 2020 will still not be charged the luxury tax. The finance ministry said cars like Toyota Vitz, Suzuki Every, Toyota Roomy, Suzuki Alto, Suzuki Baleno, Daihatsu Petrol, Honda Grace, Suzuki Wagon R, Toyota Aqua will not be subject to the luxury tax. Sedans like Toyoa Axio, Premio and Allion will also not attract the luxury tax, the finance ministry said. https://economynext.com/sri-lanka-luxury-tax-for-high-value-cars-engine-capacity-base-removed-29920/
  4. Skyonline

    Help me to find a car

    https://www.kia.lk/picanto/#Top
  5. Skyonline

    Japanese Car News

    Renault Kwid facelift launch on October 1, 2019
  6. Mahindra sets up car assembly plant in Sri Lanka Mahindra & Mahindra has set up an assembly plant in Colombo, Sri Lanka, as part of its initiative to push more volumes in the international market, at a time when domestic demand has been weak for the past one year. The Mumbai-based automaker will from Saturday start assembling compact SUV KUV100 at the new plant, with a production capacity of 5,000 units per annum. In collaboration with Ideal Motors of Sri Lanka, the plant has been built with an investment of over Rs 80 crore. The resultant entity has been christened Mahindra Ideal Lanka. While Ideal Motors will own 65% of the joint venture, M&M will own the remaining. Pawan Goenka, managing director of M&M, said the company would roll out more products over the next three years from the plant. “This is the first passenger car assembling plant in Sri Lanka. Sri Lanka is a key strategic market for us and we are now fully equipped to deliver products customised to local needs, on time,” Goenka said. Mahindra Ideal Lanka will localise four components — batteries, tyres, seats and exhaust — to lower down the cost to some extent. Spread over 10 acre, the plant in Sri Lanka will employ around 200 people. It was inaugurated by Sri Lanka PM Ranil Wickremesinghe. https://www.financialexpress.com/industry/mahindra-sets-up-car-assembly-plant-in-sri-lanka/1678333/
  7. Skyonline

    Shanghai Motor Show 2019

    Shanghai Motor Show 2019
  8. I am looking to replace my Alto with a Automatic Transmission car. AT is required for my wife (she is more comfortable in AT). Well my options are listed below. 1. Suzuki Wagon R 2019 2. Perodua Axia 2019 3. Toyota Vitz 2018 (Recondition) 4. Kia Picanto 2019 Please help me which one to go for. Recommendations for any other car is also welcome and do share any other comments, suggestions and ownership experience of the said cars. Thanks in Advance.
  9. Skyonline

    Which Automatic car? Please Help

    Thanks
  10. Duty reduction for cars if Sri Lanka's trade balance improves The government is considering duty reductions for small hybrid cars as well as mid-size sedans after the country’s trade balance and foreign reserves improve later this year, authoritative official sources said yesterday. Finance Minister Mangala Samaraweera sharply raised taxes on small hybrid cars following Central Bank of Sri Lanka pressure to put the brakes on the top-selling Japanese Kei cars -- the smallest street-legal vehicle category -- that have out-paced even trishaw sales this year. Both Samaraweera and Central Bank Governor Indrajit Coomaraswamy have maintained that the higher tax slapped from August 1 was not intended to raise more revenue, but to discourage imports, save foreign exchange and ease pressure on the rupee. Sri Lanka's trade deficit will widen as the economy picks up, more foreign investments come in, tourism earnings go up and the government borrows abroad to fund domestic spending even if money is not printed, analysts say. Prime Minister Ranil Wickremesinghe told parliament last week that the small car taxes were a temporary measure and he hoped the trade balance would improve by the end of the year. “Car duties can be brought back to what they were before August 1 or even reduced further, especially for the mid-size cars below 1,500 cc category,” an official source said. He said the 2019 budget could have more measures to buttress Minister Samarawera’s “green, clean” vehicle policy of encouraging electric and hybrid vehicles. Moves to discourage diesel use are also expected with a total ban on the import of diesel powered vehicles for private use. “There would be a re-think on the use of diesel,” the official source said adding that a complete re-think of the country’s energy policy should be undertaken. - Prices remain stable - Despite the duty on a small Suzuki Wagon R going up by as much as 425,000 rupees, there was no marked increase in retail prices at local car dealerships in the past week. Several dealers with large fleets of cars in stock took out advertisements last Sunday saying that they were still selling at the old price. “This is a very price sensitive segment of the market. If we raise the price, we will not be able to move our stocks,” a dealer at Mount Lavinia said adding that he did not notice a spike in demand even at the old price. Car sales on internet portals also showed that there had been no upward adjustment of prices as demand remained sluggish. Dealers had imported large fleets of cars anticipating a tax increase in November. The Central Bank of Sri Lanka officials said there was a foreign exchange outflow of 195 million dollars to import cars below 1,000 cc engine capacity in the first five months of this year, dramatically up from 26 million dollars spent in the corresponding period last year. The mid-sized cars below 1,500 cc also saw a rapid increase going from 20 million dollars in 2017 to 73 million dollars this year. Gasoline powered Sports Utility Vehicles (SUV) also saw a surge this year. Imports of the high-end SUVs cost 8.8 million dollars this year, compared to just 2.6 million dollars spent last year. https://economynext.com/Duty_reduction_for_cars_if_Sri_Lanka_s_trade_balance_improves-3-11507.html
  11. Skyonline

    MG ZS 2018

    If you’re the sort of person who wants a nice looking small SUV that doesn’t cost too much and is more practical than some of its competitors, the MG ZS might be an option for you.
  12. Skyonline

    2018 Budget - Vehicle import duty

    The duty on non-hybrid vehicles with an engine capacity lower than 1000cc will be Rs 1.5 million. https://www.news.lk/news/business/item/21648-import-duty-on-vehicles-below-1000cc-increased Toyota Vitz Kia Picanto Perodua Bezza Perodua Axia Nissan March Toyota Wigo Any price change?
  13. Skyonline

    2018 Budget - Vehicle import duty

    Sri Lanka allows electric car loans up to 90-pct of value Sri Lanka has relaxed budget proposals slashing Loan to Value (LTV) ratios for car imports and will allow loans up to 90% of the value for electric vehicles and 70% of the value for hybrid cars. http://www.economynext.com/Sri_Lanka_allows_electric_car_loans_up_to_90_pct_of_value-3-9185-6.html Sri Lanka pre-budget vehicle import orders under previous duty rate Individuals who opened Letters of Credit for import of vehicles prior to the presentation of Sri Lankan government budget for 2018 last week can clear them under the previous duty rate, the finance ministry said.However, these vehicles should be cleared before April 30th 2018, Minister of Finance and Mass Media Mangala Samaraweera told parliament during the budget debate. http://www.economynext.com/Sri_Lanka_pre_budget_vehicle_import_orders_under_previous_duty_rate-3-9184-6.html
  14. Skyonline

    2018 Budget - Vehicle import duty

    Sri Lanka FM defuses duty shock on used electric cars Sri Lanka's Finance Minister Mangala Samaraweera Friday agreed to extend the substantial duty concession announced in the budget for new electric cars to used models too, particularly the popular Nissan Leaf. http://www.economynext.com/Sri_Lanka_FM_defuses_duty_shock_on_used_electric_cars-3-9145-1.html
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