Boi Approved Cut & Bud Vehicles???

[Watchman]

I'm also a victim of this bloody thing .

I bought a Carina TI MY Road from this company at a price of 1.75 mil(Facelifted model). Had to wait for about one year to get it registered. finally they got the permission for that by a cabinet paper, but we(owners) had to pay the tax. I paid Rs. 283000 as the tax & then only I got it registered. Soon as the registration done, I sold it out.

If you waited and went through so much hassle to register it AND the vehicle is in superb condition AND the re-sale value of the vehicle was low, selling it would be the stupidest thing to do? Don't you think?

[SpeedyAsA]

_{True, but how would you think that this unpredictable government will not impose a special tax when renewing the revenue license, or asking for more taxes for locally essembled vehicles to cover the revenue loss or in SL market, if any myth built up as those locally assembled vehicles are not good or anything like that since this is a special category? For me, selling that vehicle was not that stupid since I had enough pressure in my mind of what will happen if they are not allowed to register / if all the vehicles detained without registering.}

_{Besides, when the vehicle is in good condition, I can sell it comfortabally than after it getting old, reg number getting old etc...}

Edited November 1, 2012 by SpeedyAsA

[priyanka]

_{True, but how would you think that this unpredictable government will not impose a special tax when renewing the revenue license, or asking for more taxes for locally essembled vehicles to cover the revenue loss or in SL market, if any myth built up as those locally assembled vehicles are not good or anything like that since this is a special category? For me, selling that vehicle was not that stupid since I had enough pressure in my mind of what will happen if they are not allowed to register / if all the vehicles detained without registering.}

_{Besides, when the vehicle is in good condition, I can sell it comfortabally than after it getting old, reg number getting old etc...}

exactly............ this is what most of the Sri Lankan fellows do not understand........... some of them want to sell their almost unusable vehicles for an extremely high price and they do various tricks for that.

when they failed they start shouting that the Sri Lankan car market is flattened or something

[Rumesh88]

Well, there is something that does not sound right here (or am I deaf?). What does the BOI has got to do with this? BOI was established to promote export oriented industries in SL (At least so the Act says). One can set up a factory to assemble vehicles under BOI and export after whatever the value addition. But if they sell the stuff locally, they should pay all the taxes which otherwise would have been paid to the Customs when importing the same item in the usual manner. In this case, there should not be much price difference between a locally assembled vehicle with imported parts and a vehicle imported as it is. When you come across something that does not fall in line with common logic you always get the feeling of a scam. When I read the posts in this forum, I felt that most of you are under the wrong impression that "since these vehicles are imported, assembled and sold by a BOI company it should be a legal deal and there should not be any hiccups". That's not the case. BOI, Customs and Finance Ministry are at logger heads although they are under the same minister. However, if this venture succeed that would be good news for those who are after the used or reconditioned car market like me.

[SpeedyAsA]

I felt that most of you are under the wrong impression that "since these vehicles are imported, assembled and sold by a BOI company it should be a legal deal and there should not be any hiccups".

What's wrong with this impression? If any company is BOI approved, then what's the illegality on that???

[The Don]

Well, there is something that does not sound right here (or am I deaf?). What does the BOI has got to do with this? BOI was established to promote export oriented industries in SL (At least so the Act says). One can set up a factory to assemble vehicles under BOI and export after whatever the value addition. But if they sell the stuff locally, they should pay all the taxes which otherwise would have been paid to the Customs when importing the same item in the usual manner. In this case, there should not be much price difference between a locally assembled vehicle with imported parts and a vehicle imported as it is. When you come across something that does not fall in line with common logic you always get the feeling of a scam. When I read the posts in this forum, I felt that most of you are under the wrong impression that "since these vehicles are imported, assembled and sold by a BOI company it should be a legal deal and there should not be any hiccups". That's not the case. BOI, Customs and Finance Ministry are at logger heads although they are under the same minister. However, if this venture succeed that would be good news for those who are after the used or reconditioned car market like me.

The BOI was established to promote overseas investment into the Sri Lankan economy by establishing industry. A BOI venture by definition does not need to be export oriented. The limitations are over things like the amount of money invested into the venture, number of people employed etc.

[VVTi]

But Don, BOI was set up to promote FDI. Hence why people naturally associate it with export or re-exports after value addition, like that Hummer/GM LHD/RHD conversion business.

How can the importation of spare parts, which uses up precious forex the country can ill afford, putting them together and selling it locally be any benefit to the country? Even if them collect on the full tax, its still the local money that keeps changing hands with a nett outflow of forex.

[The Don]

But Don, BOI was set up to promote FDI. Hence why people naturally associate it with export or re-exports after value addition, like that Hummer/GM LHD/RHD conversion business.

How can the importation of spare parts, which uses up precious forex the country can ill afford, putting them together and selling it locally be any benefit to the country? Even if them collect on the full tax, its still the local money that keeps changing hands with a nett outflow of forex.

You have a point man. How this venture was justified, I am not entirely sure. Perhaps there was foreign investment. Perhaps in the proposal they might have cited exports at a later point of time as well as selling to the local market.

To be honest all the automobile assembly projects in SL suffer from the same problem. Even some of the old bus assembly plants were BOI approved, I believe.

But in SL, not everything is what it seems..........

[VVTi]

This was started AFAIK by a political stooge in the Katana area, they all have a habit of fooling themselves with hare brained projects that in the end serves only them. the fools who fell for the trap ended up with vehicles that could not legalize or sell.

Its a classic case of a long con.

The BOI label is as good as having the big guy's picture on your car. I used to have a BOI pass on my car sometime back when I worked for a BOI company. Amazing what cops would do if they see the big BOI KEPZ/BEPZ sticker on it...

So in the same manner, you slap the letters BOI on a project proposal and it doesn't matter if they are growing bandakka, they will get the approval and there will be people in SL who will buy BOI Bandakka...

I remembered now, the main man behind the scheme met with an unfortunate end somewhere in Weliveriya, they found him in 3 pieces. Still have pics of the aftermath, same incident that took out our champion Marathon runner

Edited November 1, 2012 by VVTi

[Pericles]

_{True, but how would you think that this unpredictable government will not impose a special tax when renewing the revenue license, or asking for more taxes for locally essembled vehicles to cover the revenue loss or in SL market, if any myth built up as those locally assembled vehicles are not good or anything like that since this is a special category? For me, selling that vehicle was not that stupid since I had enough pressure in my mind of what will happen if they are not allowed to register / if all the vehicles detained without registering.}

_{Besides, when the vehicle is in good condition, I can sell it comfortabally than after it getting old, reg number getting old etc...}

exactly............ this is what most of the Sri Lankan fellows do not understand........... some of them want to sell their almost unusable vehicles for an extremely high price and they do various tricks for that.

when they failed they start shouting that the Sri Lankan car market is flattened or something

Why are you trying to pretend like you are agreeing with Speedy when you are saying something completely different to what he is saying?

[Rumesh88]

But Don, BOI was set up to promote FDI. Hence why people naturally associate it with export or re-exports after value addition, like that Hummer/GM LHD/RHD conversion business.

How can the importation of spare parts, which uses up precious forex the country can ill afford, putting them together and selling it locally be any benefit to the country? Even if them collect on the full tax, its still the local money that keeps changing hands with a nett outflow of forex.

Yes VVTi you are right with regard to FDI and BOI companies not necessarily being export oriented. Also I agree with Speedy on his concerns over the possible future tax issues. I am sure you all are aware that the Customs Ordinance is a draconian law and the imports with tax concessions under BOI regulations falls into the category of uncustomed goods. Hence even with a slight let off, SL Customs can intervene and apply their Ordinance to the letter. When that happens no one including the BOI would come to rescue you believe me. (During my career with a BOI company I came across such situations twice and the company ended up paying hefty fines for cases which, if challenged in a court of law, would have won in the company's favor. But situation does not always warrant such action). Customs can and will trace uncustomed goods and if found used or stored in a manner not complying with applicable regulations they have the power to seize such goods and impose a fine on who-so-ever who has the title.

[VVTi]

So basically it boils down to buying car that is already in the system and no one has any interest in. Best way to go.

But then out people has a bug up their arse wanting a new car, unregistered car and all that muck.

[Rumesh88]

It is common knowledge that these ventures are run with the blessing of people having a political clout. Hence, you can buy an assembled car and run without a problem at least for sometime. Unless the matter is resolved in a court of law (Remember the time of one former lady head of RMV trying to make the existing heavy vehicle licenses renewable but a court ruling reversing the decision), it is not wise to invest your hard-earned money on this type of vehicles. Political clout is temporary. Take a cue from what happened to a former Chief Minister of North-Central, former Chairman of a state bank and what is happening to his wife...... and the list can go on. You can do anything and get away as long a you have the influence but the moment you fall out you are in deep trouble.

[priyanka]

Why are you trying to pretend like you are agreeing with Speedy when you are saying something completely different to what he is saying?

man

i ve agreed only to the last point of his statement

but unfortunately, for some reason the first few sentences were couldn't be deleted. ( when i tried to delete the first part of the statement, some error massage came ) so had to keep the entire thing intact

Edited November 2, 2012 by priyanka

[kanchanap]

Heard that Huge amount of tax needed to be paid when we are going to register these cut vehicles after 31st March 2012..... Several times higher than the old amounts which had to be paid by old buyers

[SpeedyAsA]

Heard that Huge amount of tax needed to be paid when we are going to register these cut vehicles after 31st March 2012..... Several times higher than the old amounts which had to be paid by old buyers

FYI, those are not cut vehicles. They imports the vehicle in parts. Not as cuts.

[Rumesh88]

FYI, those are not cut vehicles. They imports the vehicle in parts. Not as cuts.

Not only that they are not "cut vehicles" they are not "BOI approved" either. BOI does not approve vehicles - they only approve the business venture. Shall we restart the thread with a new caption? Reminds me of the "Mehi Aluth Maalu Wikineemata Thibey" story.

[Watchman]

Rumesh? What's the fish story?

Seems like an interesting one..

[SpeedyAsA]

Rumesh? What's the fish story?

Seems like an interesting one..

Yeah, seems to be.. Can you please explain Rumesh??

[Rumesh88]

Yeah, seems to be.. Can you please explain Rumesh??

The story goes like this.A local fish monger (Malu Mudalali) started a fish stall (Maalu Kade) by the roadside with the signboard "Mehi Aluth Malu Wikineemata Thibey" (Fresh Fish sold here). A passerby asked Mudalali "what is the meaning of "Mehi"? Everybody can see it is only here that you sell your fish". So the board now changed to "Aluth Maalu Wikineemata Thibey". After a few days a client approached and asked Mudalali "what is the meaning of having "Aluth" on the signboard? No one sells rotten fish in a Maalu Kade". So the board now read "Maalu Wikineeemata Thibey". Again someone commented on the signboard. He asked "why do you want wording "Maalu" here. Everyone can not only see but smell from miles away that this is a Maalu Kade. You don't sell vegetables here, do you?". So now it read "Wikineemata Thibey". Seeing this, Mudalai's wife asked him whether he has any future intentions to give away the stuff free! "You don't give away your fish free of charge? Do you?" she snapped "This is not a Maalu Dansala". The signboard was now changed to "Thibey". A customer reading the latest signboard asked "Mudalali monawada thiyenne?" Mudalali in his utter frustration banged the signboard to pieces.Moral of the story: If you want to sell fish go to Siberia!

Edited January 22, 2013 by Rumesh88

[SpeedyAsA]

The story goes like this.A local fish monger (Malu Mudalali) started a fish stall (Maalu Kade) by the roadside with the signboard "Mehi Aluth Malu Wikineemata Thibey" (Fresh Fish sold here). A passerby asked Mudalali "what is he meaning of "Mehi"? Everybody can see it is only here that you sell your fish". So the board now changed to "Aluth Maalu Wikineemata Thibey". After a few days a client approached and asked Mudalali "what is the meaning of having "Aluth" on the signboard? No one sells rotten fish in a Maalu Kade". So the board now read "Maalu Wikineeemata Thibey". Again someone commented on the signboard. He asked "why do you want wording "Mallu" here. Everyone can not only see but smell that this is a Maalu Kade. You don't sell vegetables here". So now it read "Wikineemata Thibey". Seeing this, Mudalai's wife asked him whether he has any future intensions to give the stuff free! "You don't give away your fish free of charge? Do you?" she snapped. The signboard was now changed to "Thibey". A customer reading the latest signboard asked "Mudalali monawada thiyenne?" Mudalali in utter frustration banged the signboard to pieces.Moral of the story: If you want to sell fish go to Siberia!

Ha..ha.. Nice one.

[Watchman]

hehee... interesting read thanks!

[Nimz77]

Any working contact number for this place?Viraj number is not working..

[DNP]

Any working contact number for this place?Viraj number is not working..

0112254126

2 months ago I went there.but I was not satisfied regarding prices.

Edited February 27, 2013 by DNP

[xXx]

Here a great article about this illegal venture.

http://www.thesundayleader.lk/2013/02/24/billion-rupee-vehicle-import-fraud-continues/