Jump to content
  • Welcome to AutoLanka

    :action-smiley-028: We found you speeding on AutoLanka Forums without any registration! If you want the best experience, please sign in. Safe driving! 

esanda007

Car Sale Ownera Telling 30% Tax Increase

Recommended Posts

Why do I get the feeling that this price hike is a temporary thing. First our FM spilled the beans in Japan by saying not to export cars to Sri Lanka until the budget comes. Then comes the rescheduling of FOB prices. Is it just a ploy to subdue pressure on USD reserves by reducing car imports and an ad hoc measure to arrest the devaluation of SLR?

This is the lead up to the festive season. Every year normally the rupee depreciates during this period as i have seen.

As we import a lot during this period, don't think curbing vehicle imports will help much.

Edited by B2Spirit

Share this post


Link to post
Share on other sites

Very poor economic vision of the finance ministry, in managing this sector. Every government use mere, grade 10 arithmetic logic to control / manage the economic affairs. Big picture is overlooked and in-depth analysis is very rare or non existing. in this case immediate result will be, car sellers will become blood suckers. But with no additional tax revenue for the government for the ex-stock sales. Consumers have been rendered helpless.

What the consumers should do is, to stop buying cars for 2 -3 months and wait. Some may argue, but it is always better to wait till the tax dust to settle down.

Market is tense now and in scenarios like this, the least thing the sellers want is the customer to be rational, push them on impulse or speculative buying. Unless consumers take a step back and ponder a little, you will be at the receiving end. It is true that influx of vehicles is a big burden for our poor economy. Some 20 years back, a car was the last in the capital investment agenda for family. It was very rare that we got a car to travel and opt to pay a loan for that. But the social mentality has changed. Now a car is part to of the overall family personality. ( some may disagree and bang on the utility aspect) but I believe gradually even a poor family will start with an old car with utility aspect in mind and finally go with the status qua, attached to it. However, it is unfair to let the general public be screwed at will, and make them pay for the incompetence of the politicians - without any vision for improving public transport.

Incompetent handling of public transport system for the past 3 - 4 decades has caused the present situation. So people have decided to solve the problem themselves, by buying a car on loan, and get back to square one with the increasing traffic jams. Now we have two problems - the loan and the traffic. The public transport system should at least be a 10 year plan with a long term overall economic cost / benefit analysis. I was involved in planning the Abu Dhabi bus operation (before 2008 there was no buses and only taxis). With even so much funding available, the government wanted to plan only for a 03 years loss period for the operation and the bus operation should be profitable from the 4th year. There are many success stories, like Singapore, Malaysia in the public transport systems - to which we are deaf and blind. Finally I would suggest that our ministry experts should learn the basic economics of logistics and transport from Dabbawalas in India.

  • Like 6

Share this post


Link to post
Share on other sites
Very poor economic vision of the finance ministry, in managing this sector. Every government use mere, grade 10 arithmetic logic to control / manage the economic affairs. Big picture is overlooked and in-depth analysis is very rare or non existing.

That of course is expected. Economics in SL is an art subject and you are awarded a BA at the local unis. But in most other countries Econ is based on mathematical modelling and you are awarded a BSc. Well, for an art subject you don't need mathematical skills beyond 10th grade!

Edited by Rumesh88
  • Like 1

Share this post


Link to post
Share on other sites
That of course is expected. Economics in SL is an art subject and you are awarded a BA at the local unis. But in most other countries Econ is based on mathematical modelling and you are awarded a BSc. Well, for an art subject you don't need mathematical skills beyond 10th grade!

Have you actually followed an economics degree at a local university? If not then how would you know what the quality of work is like? Just because the degree is a bachelor of arts does not make it inferior. That mentality is rather out of date.

Share this post


Link to post
Share on other sites

Rumors abound. Car sales folks are predicting that luxury vehicles will be prized out of the market. Maybe they just want to sell stagnant stock. Hard to blame them. They are just businesses trying to make a buck. The policy makers are to blame. But then these morons were voted in by the people. So you can say that the common people brought the whole mess upon them.

  • Like 1

Share this post


Link to post
Share on other sites
Have you actually followed an economics degree at a local university? If not then how would you know what the quality of work is like? Just because the degree is a bachelor of arts does not make it inferior. That mentality is rather out of date.

Mine is not econ but I have a close association with it. My comment was not to mean the local BA inferior but not fit for the intended purpose in today's context.

Share this post


Link to post
Share on other sites

@Aquaman,

I can not show off dear as it is not a brand new car :violent-smiley-027:..

For the other question, my answer is Yes of course....My main concern is to save my money. But that will automatically save the environment too wan't it ?. Diesel car would not give both those achievements. That is why hybrids should be promoted.

Share this post


Link to post
Share on other sites

Can we cancel an order we've placed at an agent if the price rises drastically when the car arrives here?

Share this post


Link to post
Share on other sites

These buggers don't care about creating and EXPORT MARKET FROM Sri Lanka, all they care about is the hit they will take in being unable to EXPORT out of Japan.

Mara goo patriots thamai. LOL!!

  • Like 4

Share this post


Link to post
Share on other sites

Tell me one good reaon why even the deepest darkest Afric would want a car, such as an odo meter turned Fb15 from Sri Lanka?

Share this post


Link to post
Share on other sites
Can we cancel an order we've placed at an agent if the price rises drastically when the car arrives here?

If you were given a quotation and you signed a document, I think the agent have to sell you for the price mentioned in the quotation

Tell me one good reaon why even the deepest darkest Afric would want a car, such as an odo meter turned Fb15 from Sri Lanka?

I was having a chat with my dad about this duty hike and when I mentioned him about the re-exporting scheme from SL first thing he said was why would some one want a car used in SL when you can buy better one from Japan :P

  • Like 1

Share this post


Link to post
Share on other sites
If you were given a quotation and you signed a document, I think the agent have to sell you for the price mentioned in the quotation

The sales contract may have a clause that says the buyer is liable to pay any increases in import duties levied by the government. If it does, even if you sign a document agreeing on the price they have quoted now, you might have to pay more if the duty is increased.

  • Like 1

Share this post


Link to post
Share on other sites
The sales contract may have a clause that says the buyer is liable to pay any increases in import duties levied by the government. If it does, even if you sign a document agreeing on the price they have quoted now, you might have to pay more if the duty is increased.

Oh yeah if the document mentions says something like that he will have to pay extra,

anyone remembers what the agents did last time the price went up?

Share this post


Link to post
Share on other sites

Further to my previous post above -

The above proposals by SLAEAJ are sarcastic and will further aggravate the situation. There are three things regarding the current auto industry in SL - The market is saturated and no further horizontal scope - One of the most corrupted businesses cheating state coffers - thirdly they have to win customer confidence for survival.

We can not maintain a profitable export market in Africa unless we are competitive with Singapore like countries for used car exports. It is a from "zero planning" situation for Sri Lanka.

Auto industry need to be strategic rather than wait for the unsuspecting customer for the next sale. I would propose one point for them to win customer confidence - is there any valid reason that they can not publish the JAAI certificate number with their individual car sale ads or they can display same on the windscreen with the sale price. The general public can verify the authenticity of the car details. Can some one explain any good reason why the JAAI number held confidential from the customer.

Please refer to this article and see how these people cheat public coffers at will - http://www.divaina.com/2015/10/11/feature11.html

We as customers need to be aware and contribute to achieving fair-play in this industry. We should postpone our buying decision for 2- 3 months or to Q1 in 2016. There are a lot of international cases for big brand failures, by improved customer rational into the buying decision.

Stop being the "unsuspecting next customer" for these corrupt dealers and force them to come to terms with fair play with rational customers in the auto industry.

  • Like 1

Share this post


Link to post
Share on other sites
Wow! What kind of idiot would have bought that

There is A special kind machan.. The Toyota seekers

Share this post


Link to post
Share on other sites
@Aquaman,

I can not show off dear as it is not a brand new car :violent-smiley-027:..

For the other question, my answer is Yes of course....My main concern is to save my money. But that will automatically save the environment too wan't it ?. Diesel car would not give both those achievements. That is why hybrids should be promoted.

I think you should study more on this aspect. Diesel is both cleaner and economical than petrol. At least Euro Diesel engines

Share this post


Link to post
Share on other sites

I can see some of our own 121, N16 and hybrid owners quickly detailing their cars hoping African car buyers will be lining up to buy them... good time to start a African Detailing Center... LOL!!!

  • Like 1

Share this post


Link to post
Share on other sites

Close down the car sales or at least stop them from importing stocks without orders.

Let the people who want to buy, order and get a

1. Brand new car from the agents

2. Used car from dealers for a commission like the individual imports today.

That way government will be able to control the imports and would allow them to track the income of people more easily.

And for the traffic problem there needs to be a way to encourage people to use more public transport. To do that,

1. if you want to solve it with buses, you will need to add more buses for the peak hours, increase the quality of the service and bring in stricter rules for the number of passengers. This would solve the problem but might not be economically sound.

2. Improve the train service on the main lines and have a good inter-connecting bus system for the short hauls.

Once they have a solution, just put a high city entry tax that would discourage people from using personal transports.

But just like the liquor/cigarette problem, the govt would take a big tax hit if the petrol consumption reduces. :)

And in Sri Lanka, the govts never ever take hard unpopular decisions, so all this is pointless as nothing will ever be implemented.

Edited by B2Spirit

Share this post


Link to post
Share on other sites

Still there are rumours about this 30% tax hike for all types of cars.

Don't know where would this 121 and n16 end up afterwards.

Share this post


Link to post
Share on other sites
Still there are rumours about this 30% tax hike for all types of cars.

Don't know where would this 121 and n16 end up afterwards.

before that are they going to publish rates for the other japanese brands or are they excluded from the hike :)

Share this post


Link to post
Share on other sites

so news like this, FOB value already increases and there will be nearly 32% increase of tax for japan vehicles. so n16 and 121 ended in 2.8 Mn :speechless-smiley-004: Wonder of Asia is near now

Share this post


Link to post
Share on other sites
so news like this, FOB value already increases and there will be nearly 32% increase of tax for japan vehicles. so n16 and 121 ended in 2.8 Mn :speechless-smiley-004: Wonder of Asia is near now

To be honest I think we should all patiently wait till the budget and official announcement are made. As of right now everything seems to be more speculative than actual fact and everything that has been floating around has repercussions beyond just cars.

For example in what you claimed to have heard:

There might be issues in other areas of trade if the govt. increases tax on just Japanese brands of cars. Japan does a lot in a other areas of trade as well as infrastructure/technical development. So other than siting trade agreements with other countries that effectively maintains the current, or exempts them from new, taxes; there might be issues that could ripple down to those other areas.

If they for example increases taxes on car imports categorized as "used" then it should apply to all brands unless some trade agreement supersedes it. If such a measure is enforced then of course the most effected would be Japanese vehicles from Japan as that is what we bring down the most and even BNew cars from the JD market are categorized as used.

Then again, anything is possible in SL...so you never know...

Edited by iRage
  • Like 1

Share this post


Link to post
Share on other sites

<blockquote class='ipsBlockquote'data-author="sasika" data-cid="284385" data-time="1444526783"><p>

I think you should study more on this aspect. Diesel is both cleaner and economical than petrol. At least Euro Diesel engines</p></blockquote>

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Register for a new account in our community. It's easy and FREE!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×