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iPrabhath

Luxury tax on vehicles to be decided based on the vehicle model instead of the engine capacity.

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On 10/24/2019 at 7:38 PM, iRage said:

So can I ask what is the basis for a C-HR to attract Luxury taxes but a Vezel and Vitara doesn't ? Especially when the Vezel and the C-HR are roughly the same price :) 

Vitara's CIF is below 3.5 mil so not lux tax.

Vezel even at the same CIF as C-HR is a hybrid so the lux tax exemption limit is 4 mil for hybrid compared to the 3.5 mil for non-hybrids, thus no lux tax for Vezel.

Edited by charithtg
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1 hour ago, charithtg said:

Vitara's CIF is below 3.5 mil so not lux tax.

Vezel even at the same CIF as C-HR is a hybrid so the lux tax exemption limit is 4 mil for hybrid compared to the 3.5 mil for non-hybrids, thus no lux tax for Vezel.

not correct
The Vitara costs like 19000 to 24000 gbp brand new, and a reasonable used one near 15000 gbp 

so how come cif is below 3.5? It’s nowhere near,
if you are plainly quoting that document well I understand 

If so why aren’t there any Vitaras in the 5 mil range in the market? 
even the early 6.1 6.2 figures were due to the low gbp rate few months ago, now a new one will touch 6.4 6.5
once implemented they will catch these or bring really bad cars to match the cif value

Edited by tiv
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16 hours ago, tiv said:

not correct
The Vitara costs like 19000 to 24000 gbp brand new, and a reasonable used one near 15000 gbp 

so how come cif is below 3.5? It’s nowhere near,
if you are plainly quoting that document well I understand 

If so why aren’t there any Vitaras in the 5 mil range in the market? 
even the early 6.1 6.2 figures were due to the low gbp rate few months ago, now a new one will touch 6.4 6.5
once implemented they will catch these or bring really bad cars to match the cif value

i was just interpreting what the doc says.

further they have mentioned the before depreciation cost as 17291 GBP for vitara and aft depreciation 85% is 14697 GBP. so in this case the amount u mentioned for a "reasonable used one" is in par with what the doc has mentioned.

but in the end i think what customs will consider for CIF value is what the local agent would tell them. or in the case of a model which the agent is not importing to SL i dont know how the CIF is considered by the customs. 

PS - Much appreciated if anyone can shed some light on how the customs get CIF values for non agent import models.

Edited by charithtg
PS

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26 minutes ago, charithtg said:

i was just interpreting what the doc says.

further they have mentioned the before depreciation cost as 17291 GBP for vitara and aft depreciation 85% is 14697 GBP. so in this case the amount u mentioned for a "reasonable used one" is in par with what the doc has mentioned.

but in the end i think what customs will consider for CIF value is what the local agent would tell them. or in the case of a model which the agent is not importing to SL i dont know how the CIF is considered by the customs. 

PS - Much appreciated if anyone can shed some light on how the customs get CIF values for non agent import models.

If they go with what the agent tells them on the CIF value..then they will have to bring in the depreciation table again.....so we took a huge complicated loop back to where we were :D

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1 minute ago, iRage said:

If they go with what the agent tells them on the CIF value..then they will have to bring in the depreciation table again.....so we took a huge complicated loop back to where we were :D

Totally agree. which is BTW we are very good at, going in circles...

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8 minutes ago, charithtg said:

Totally agree. which is BTW we are very good at, going in circles...

:)

I understand this is for luxury tax...but won't be too surprising if this starts creeping back in to normal import taxes as well.

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8 hours ago, iRage said:

:)

I understand this is for luxury tax...but won't be too surprising if this starts creeping back in to normal import taxes as well.

I feel this is just a loop, they ll bring a cutoff per model, cars will get even more costlier 

or else they’ll start to bring really torn out cars after meddling with them to keep a low cif, 

9 hours ago, charithtg said:

i was just interpreting what the doc says.

further they have mentioned the before depreciation cost as 17291 GBP for vitara and aft depreciation 85% is 14697 GBP. so in this case the amount u mentioned for a "reasonable used one" is in par with what the doc has mentioned.

but in the end i think what customs will consider for CIF value is what the local agent would tell them. or in the case of a model which the agent is not importing to SL i dont know how the CIF is considered by the customs. 

PS - Much appreciated if anyone can shed some light on how the customs get CIF values for non agent import models.

Yes but would they let suvs slip by, I see headlines all over saying luxury tax to be imposed on suvs blah blah 

so one chum brings a 2019 Jan Vitara used for 15k to 16kgbp won’t get the tax, whereas another fella brings a 2019 November one brand new for 20k, and of another wants the sz5 for like 24k gbp, 

there is going to be a variation of the tax for the same car that has the same “luxuries” and 
 

besides being used doesn’t affect the so called luxuries they find awesome enough to tax, lol 

so a 1year old TXL will be cheaper than a new TZ Prado,

when they try doing this with mercs! Obviously will bottom out like last time 

 

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Well its official ladies and gents, published yesterday. a circular might come out soon, not sure though.

From Finance Ministry Web page

Luxury tax on motor vehicles will not be affected for small vehicles.
PUBLISHED ON 31ST OCTOBER 2019

The Finance Act has been amended as proposed in the Budget 2019 by Minister of Finance Hon. Mangala Samaraweera, the tax levied on motor vehicles will only be subject to luxury cars and jeeps and also the new tax will not be relevant to small cars.

Vans, single cabs, double cabs, motorcycles and motor tricycles are not subject to this luxury tax. Earlier, double cabs were subject to the luxury tax category but it will be thrown off from November 1.

This luxury tax will be effective from the 6th of March 2019 and the new tax will apply to all luxury vehicles in which the letters of credit were opened to import motor vehicles after 6th March. In accordance with the new regulations, while importing diesel as well as petrol cars and jeeps are valued over Rupees 35 lakhs then the luxury tax is levied only for the exceeding amount.

The CIF Value of Hybrid Vehicles has been exceeded Rupees 40 Lakhs and the value of an electric vehicle has been exceeded Rupees 60 Lakhs, the Luxury tax will be levied only for the exceeding amount.

With the advancement of the technology for motor vehicles, the luxury of vehicles is determined not only by the engine capacity but also the features of a vehicle. Accordingly, the tax on cylinder capacity for petrol cars below 1800 cylinder, diesel cars and jeeps below 2300 cylinder and for electric vehicles below 200 kW will be removed from 1st November. Whereas, until the 31st of October the letters of credit have been opened and the vehicles are imported and cleared before 21st April 2020 will be exempt from the luxury tax.

This is further emphasized that this luxury tax will not be applied to small vehicles.

Accordingly, this luxury tax will not be applicable for Toyota Vitz, Suzuki Every, Toyota Roomy, Suzuki Alto, Suzuki Baleno, Daihatsu Petrol, Honda Grace, Suzuki Wegon R and Toyota Aqua and also this luxury tax is not subject to normal Axio, Premio and Allion models.

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Next thing they might be eyeing should be the 1000cc Civic and 1000cc Vitara😅... They still cannot find an exact base to increase the taxation on them...

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10 minutes ago, alpha17 said:

Next thing they might be eyeing should be the 1000cc Civic and 1000cc Vitara😅... They still cannot find an exact base to increase the taxation on them...

I think the 1000CC Civic is subject to this luxury tax as the CIF is above LKR 35 Lakhs! Vitara might also fall under the same.

Ironically, slightly used models might not be subject to this tax! :D

 

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What’s a Daihatsu petrol

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25 minutes ago, tiv said:

What’s a Daihatsu petrol

i think they are commonly addressing all Diahatsu petrol car. LOL...

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looks like prices for some vehicles  already reduced, about 2 million loss for those who imported Hilux already?

 

tax.jpg

Edited by ajm

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On 11/8/2019 at 1:16 AM, ajm said:

about 2 million loss for those who imported Hilux already?

2017/18 registered Hilux being advertised for 9-10 million, but can buy brand-new for 6million+ permit price now? I want be surprised if more Merc X-class and VW Amaroks are brought down now😁

Edited by vag2

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