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Car Sale Ownera Telling 30% Tax Increase


esanda007

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That's a usual saying by car sale people.they always say about tax hikes whenever you ask.current regime is against the vehicle imports.so there will be tax hike. Probably on next budget. Not sure though.sudden jump of yen and doller has already took the car prices up.

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that time of the year again :).

Looks that way isn't it from the sounds the govt. is making.

But with the man at the helm at the finance ministry you never know.

He cancels permits and then cancels the circular that canceled the permits.

He increases vehicle taxes, cancels depreciation table and then relaxes the age limit on vehicle imports.

He put a cap on leasing for vehicles at 70% and then relaxes it to 90%.

Edited by B2Spirit
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If the above news is true don't you think that its other way around.. no body gonna hold their imports if taxes are going up and I doubt a politician will take that chance asking them to hold their imports and then screw them with new taxes.. as a gesture he may have said that hold the import until some tax changes into the positive side.. and what I heard is they are trying to get rid of older vehicles.. but end of the day they wont care.. they get their vehicles tax free and on top of that we fund them for a luxury fleet maintained by public funds..

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Yes we can guess both ways.

- Trying to save importers because reducing tax will devalue already imported vehicles. or

- Trying to avoid mess which happened when tax increased in January and had to release vehicles already shipped in old tax rates.

What I feel it's second reason. Only Sumanadasa can tell for sure.

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that time of the year again :).

Looks that way isn't it from the sounds the govt. is making.

But with the man at the helm at the finance ministry you never know.

He cancels permits and then cancels the circular that canceled the permits.

He increases vehicle taxes, cancels depreciation table and then relaxes the age limit on vehicle imports.

He put a cap on leasing for vehicles at 70% and then relaxes it to 90%.

Does this its possible to lease vehicle up to 90% of it's value? :speechless-smiley-004:

Edited by Magnum
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could go either way but a raise is logical... there is an unsustainable number of vehicles on our roads now. while the solution would be is of course to improve public transport we cant expect that from GOSL. they are rather likely to do something like raise the taxes.

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And the news has already jacked up used jap baiya cars. I was on a hunt for 2011 prius since I run 4500km/month.today morning the asking price was 38-39.after this news now the owners asking for 43-45.

So we are back to era of appreciation of value of used car.

Sigh.

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No idea about this. .

Customs values for Mercedes benz are being increased

So now even C220 is not possible import for any of the permits

Same thing happened to pajero, all the landrovers except freelander, most audi s

Very soon the prado and BMWs will also come to the end

So that may be the end of the permit story

Edited by priyanka
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in one hand I hear stories that government is trying to get rid of old road unworthy vehicles and other hand they are trying to increase the tax on new import.. this is a seriously messed up policy making...they must be really struggling for foreign currency as one statement they simply encourage Indians to deposit their black money here..

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No idea about this. .

Customs values for Mercedes benz are being increased

So now even C220 is not possible import for any of the permits

Same thing happened to pajero, all the landrovers except freelander, most audi s

Very soon the prado and BMWs will also come to the end

So that may be the end of the permit story

They, as I heard are doing a proper valuation now. C200, C220, C180 all were valued to 30000$ and now they will value them accordingly. (I heard this news from a sale guy who tried to sell me a 2014 C200), so yes, permit story will end and the C class will reach 15-16 million under normal taxing. Bonus for those who bought it, and sorry for those who couldn't

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They, as I heard are doing a proper valuation now. C200, C220, C180 all were valued to 30000$ and now they will value them accordingly. (I heard this news from a sale guy who tried to sell me a 2014 C200), so yes, permit story will end and the C class will reach 15-16 million under normal taxing. Bonus for those who bought it, and sorry for those who couldn't

So which category do you fall under?

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No idea about this. .

Customs values for Mercedes benz are being increased

So now even C220 is not possible import for any of the permits

Same thing happened to pajero, all the landrovers except freelander, most audi s

Very soon the prado and BMWs will also come to the end

So that may be the end of the permit story

It make sense doesn't it? These permits were a joke from day one. They are issued to under paid government workers as a compensation. If so why is there such a high age restriction? Taking the age restriction into account why is the permit reissued every 5 years? and how can an underpaid worker afford a premium car? Due to stupid policy decisions like this it makes it hard to provide concessions to people who deserve a car.

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So its confirmed that the duty is going up in the budget. Check this Dailymirror article

http://www.dailymirror.lk/90093/vehicle-import-levies-to-be-applied-after-budget-ravi

Bdw budget comes out in end of November eh?

The Govt is covering themselves i guess and ensuring that they don't have to give any amnesty's this year.

Simplifies the rules and puts an end to that loophole.

Edited by B2Spirit
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As i remember in the good old days the permits were issued for only lyk $15,000 or $18,000.

They looked at the vehicle values and set a ceiling that is enough to get a good car.

That's the era when the corollas n civics came through permits, which i guess was the right scheme.

The current scheme is sort of a racket to enable rich ppl to get high end vehicles cheaply through govt servant permits.

We have a permit where the ceiling is 25000 but you can go to 30000 or 35000 by paying different rates.

Why do you need that when the corollas and civics would easily fit under $25,000.

And when it comes to culling of the permits, what did they cancel 1st ? They went ahead and canceled the tax payer's permit.

Those guys were actually paying something to the govt and that's how we encourage income tax payments :).

The rest of the permits, they are going in roundabout fashion coz they don't have the backbone to face those powerful lobbies to cancel/change the current scheme :)

Edited by B2Spirit
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I think this is good. It si time all vehicle imports are stopped as there are enough cars in sales to alst a few years.

But won't this mean that all the car sales will increase prices across the board and end up making more profit off the stocks they currently have?

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Hi guys,

I sold my car last week and hope to buy a car through a direct importer. Hope to open LC by t'moro or day after t'moro.

In the current situation, would I have to bear the additional tax increment? Even If the shipment clearing done before the budjet, will that tax increment affect to the price?

Answers to above may be probabilities, but important facts to me. Anyone with clear idea on that, please....

Thanks.

Edited by SAB
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Hi guys,

I sold my car last week and hope to buy a car through a direct importer. Hope to open LC by t'moro or day after t'moro.

In the current situation, would I have to bear the additional tax increment? Even If the shipment clearing done before the budjet, will that tax increment affect to the price?

Answers to above may be probabilities, but important facts to me. Anyone with clear idea on that, please....

Thanks.

Depends on the timing. If whatever the tax revision is gazetted before you make the Customs entry for your shipment then the revision is applicable. For you to make the Customs entry you should have the complete set of documents in your hand ( Delivery Order, Bill of Lading, Packing List and Commercial Invoice endorsed by the bank as the proof of payment etc) for the shipment. Sometimes the shipment arrives on time but the documents get delayed. If you are on a tight time frame to beat the tax revision all these matters.

Edited by Rumesh88
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Depends on the timing. If whatever the tax revision is gazetted before you make the Customs entry for your shipment then the revision is applicable. For you to make the Customs entry you should have the complete set of documents in your hand ( Delivery Order, Bill of Lading, Packing List and Commercial Invoice endorsed by the bank as the proof of payment etc) for the shipment. Sometimes the shipment arrives on time but the documents get delayed. If you are on a tight time frame to beat the tax revision all these matters.

Thanks rumesh.

That sounds like its better to keep additional 2-3 lacks on hand. :sport-smiley-027:

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