Import Tax Slashed By 50%

[rangerover]

I dont think even if the duty was supposed to bring down prices to the 2003/04 level, the prices would reflect the same. Because

1. Appreciation of the yen (1.25 compared to 0.9 range during 03/04)

2. Significant deman in auctions

3. Natual inflation levels.

[isurujosh]

I dont think even if the duty was supposed to bring down prices to the 2003/04 level, the prices would reflect the same. Because

1. Appreciation of the yen (1.25 compared to 0.9 range during 03/04)

2. Significant deman in auctions

3. Natual inflation levels.

not to mention stupid sri lankan buyers thinking japan is the only country to bring a car down from.

i think dealers world over are greedy pigs and that is what makes them dealers. there is no point whinning about middle-man profits. i think instead of whinning there are two courses of actions that can be taken by a buyer wanting to really benefit from this concession.

1) cut the japanese crap and look towards europe for more high tech equipment. a modern european 1.4L (small engined) turbo/twin charged vehicle produces lot more power and torque that japanese naturally aspirated outdated junk. i am sure these sensible european buys are lot more affordable than these japanese cars that are on a price bubble right now. by turning to europe you can take advatage of depreciated £ too!!! europe has japanese brands for sale as well, in case if you are still paranoid about non-japanese brands.

2) try to bring down the car your self or through your personal contacts abroad. it aint rocket science. i was checking out from a clearing agent today and they said if we manage to ship the car from aboroad then they will handle all documentation work for us back in sri lanka for a fee of only 7,500 Rs. (we only have to pay taxes + their 7,500 fee) they said that leaves us with no hassle.

[Devinda_Z]

one person in the business told the smart cabs are not affected by this but prices will increase! and still it would have a 2.5 mil diff to T/Hilux double cab it seems

Was quite interested in a Smartcab & did some asking about - the going rater for the 3.0 G Toyota Vigo's is 4.5 & there about which is faaar from cheap & infact supposedly has a Rs 50,000 increase in tax on the vehicles in that category

[rangerover]

I was wondering, if ur to buy a car from england and ship it here, would you be taxed on the depreciated agent valuation of the car or the price you paid for. For example a mercedes c class 2007 is around 9,500 pounds (around 1.6 million rupees). Since the C180 would fall in to the 1600cc - 2000cc bracket of 150% on CIF, it should essentially have a landed cost of LKR 4 million (1.6mil + (1.6mil X 150%)).

Is this right?

[Devinda_Z]

I was wondering, if ur to buy a car from england and ship it here, would you be taxed on the depreciated agent valuation of the car or the price you paid for. For example a mercedes c class 2007 is around 9,500 pounds (around 1.6 million rupees). Since the C180 would fall in to the 1600cc - 2000cc bracket of 150% on CIF, it should essentially have a landed cost of LKR 4 million (1.6mil + (1.6mil X 150%)).

Is this right?

when you put it like that things seem like an amazing deal!

anyone who's got experience importing cars direct care to share?

[GihanFX]

now what is the price of this single cab ?

[madmax]

I was wondering, if ur to buy a car from england and ship it here, would you be taxed on the depreciated agent valuation of the car or the price you paid for. For example a mercedes c class 2007 is around 9,500 pounds (around 1.6 million rupees). Since the C180 would fall in to the 1600cc - 2000cc bracket of 150% on CIF, it should essentially have a landed cost of LKR 4 million (1.6mil + (1.6mil X 150%)).

Is this right?

CIF price of 1.6 million is the depreciation in the UK. I'm guessing the CIF for a 2007 C-Class would have been atleast US$25,000 when brand new. According to the depreciation table given by SL Customs (refer: http://www.customs.gov.lk/mv/mvpg02.pdf) the CIF price now would be US$19,250 (77%). I believe the excise duty will be calculated as $19,250 *150% (not on the actual price you paid - 9,500 sterling). Then there's also other tax components - VAT, Port levies, environmental taxes etc etc... I'm thinking the price will be close to 6Mil landed - still not bad considering what they used to cost...

[saraprobe]

when you put it like that things seem like an amazing deal!

anyone who's got experience importing cars direct care to share?

I was told a different story by an importer,well he is an exporter from japan, I dono who's correct, As far as I know they get the local agent and calculate by the by the brand new car price.

[saraprobe]

CIF price of 1.6 million is the depreciation in the UK. I'm guessing the CIF for a 2007 C-Class would have been atleast US$25,000 when brand new. According to the depreciation table given by SL Customs (refer: http://www.customs.gov.lk/mv/mvpg02.pdf) the CIF price now would be US$19,250 (77%). I believe the excise duty will be calculated as $19,250 *150% (not on the actual price you paid - 9,500 sterling). Then there's also other tax components - VAT, Port levies, environmental taxes etc etc... I'm thinking the price will be close to 6Mil landed - still not bad considering what they used to cost...

What are the other tax component? I thought only 150% :unsure:

[Lalinda]

I was wondering, if ur to buy a car from england and ship it here, would you be taxed on the depreciated agent valuation of the car or the price you paid for. For example a mercedes c class 2007 is around 9,500 pounds (around 1.6 million rupees). Since the C180 would fall in to the 1600cc - 2000cc bracket of 150% on CIF, it should essentially have a landed cost of LKR 4 million (1.6mil + (1.6mil X 150%)).

Is this right?

I have some experience on this. Tax is charged either on top of local agent valuation * depreciation table at customs or your invoice value for whichever value that is higher. For example, a car with CIF in Japan for 700,000 yen, you expect to pay 700,000 * 150% tax. But that is not the case in most instances. If the agent gives a valuation which is still higher after applying depreciation according to customs table, tax will be calculated on that.

So for the CIF 700,000 yen car you bought, agent would give a valuation like 900,000 yen and depreciation of 80% for a 2.5 – 3 year old car, tax would be charged as

(900,000 * 80% + Insurance + Freight + “Options”) * Sri Lanka customs Exchange rate.

“Options”, is whatever options that are in the brought down car which are not present in Agent’s valuation. So if the agent’s car doesn’t have a CD player, but your car has one then you got to pay for that. Not sure, who decides that price of that option.

You need to keep in mind that the valuation given by agent is also in that particular currency. So your tax differs every week depending on the exchange rate published by customs for that week.

Edited June 14, 2010 by Lalinda

[SeanD]

So long story short, you are not going to save anything by importing it yourself?

Btw, anyone have any experience with customs auctions?

Edited June 14, 2010 by SeanD

[lasi]

I think Axio's X Grade should come to around 3.4.

Was 3.8 Mn for a G grade car?

I don't know what the G stands for but Yes it is a G grade car. Anybody know how the grade is defined?

[sklsaminda]

now what is the price of this single cab ?

Toyota Hilux Double cab - Unregistered - YOM 2006 - near Rs. 6 mil

Toyota Hilux Single cab - Unregistered - YOM 2006 - near Rs. 3 mil

This is only about YOM 2006 (not YOM 2010)

:unsure:

[Lalinda]

So long story short, you are not going to save anything by importing it yourself?

Btw, anyone have any experience with customs auctions?

Not really. You can save on the margin the car sales keep. However, there is a risk factor. If the exchange rate goes sky rocketing during the time your car lands here, you might not get much of a benefit or even lose out. Plus drawbacks like not being able to check out the car before you buy and all that stuff. Also some irritating interactions with government institutions like Inland Revenue, Customs dept. to get documents sorted out. You will also need a clearing agent to work with you to clear it when you have all documents ready.

[jaga]

CIVIC 2010 1.6 lt is 6.1 millions.

[kaushama]

Not really. You can save on the margin the car sales keep. However, there is a risk factor. If the exchange rate goes sky rocketing during the time your car lands here, you might not get much of a benefit or even lose out. Plus drawbacks like not being able to check out the car before you buy and all that stuff. Also some irritating interactions with government institutions like Inland Revenue, Customs dept. to get documents sorted out. You will also need a clearing agent to work with you to clear it when you have all documents ready.

I m going to take the risk and do it. I have friends in Japan, who can find a good car for me.

[kalana]

Going OT here... please dont mind

i found this article..

http://hubpages.com/hub/reasons-to-buy-new...k-series-engine

is this available in sri lanka ?

[saraprobe]

CIVIC 2010 1.6 lt is 6.1 millions.

This is insane, surely I can buy 3civic's in here for that price

[Elvis_Pil]

Civic was going closer to 8mil before the tax cut

[kaushama]

This is insane, surely I can buy 3civic's in here for that price

Surely One can buy Mercs or BMWs for that money in UK!

Sri lanka is a strange land by all means!

Edited June 14, 2010 by kaushama

[kaushama]

This is insane, surely I can buy 3civic's in here for that price

Surely One can buy a Mercs or BMW for that money in UK!

Sri lanka is a strange land by all means!

[kaushama]

And our tax money goes to fund tax free vehicles for Politicos!

Edited June 14, 2010 by kaushama

[kaushama]

Getting the tax free vehicles for new politicos had been the most urgent issue of national priority in the post-election Parliament!

Edited June 14, 2010 by kaushama

[nadunr]

yes, People earn very less , but hav to spend a lot for low quality vehicles

[Pericles]

Civic was going closer to 8mil before the tax cut

Was around 5.8 when it was launched too IIRC.