Sri Lanka hikes tax to curtail auto imports; to impact Indian companies

[Lankan Ranger]

Sri Lanka hikes tax to curtail auto imports; to impact Indian companies

In a move that will impact Indian auto exporters, Sri Lanka today raised tariffs on vehicle imports to curb high import expenditure and the fuel bill.

The new manufacturing levy will come into force at midnight today and affect Indian brands of motor vehicles.

As a result of the hike, a 1000 cc car would attract a total tax payment at the point of import at 200 per cent, as opposed to 120 per cent earlier.

Petrol-powered three-wheelers, a market dominated by India's Bajaj Auto here would now be paying a total tax of 100 per cent of the value against the previous 51 per cent.

The Sri Lankan Treasury said the decision was taken in view of the increasing number of vehicles populating the Sri Lankan roads since 2009.

Vehicle imports have gone up from 3,421 units in 2009, to 37,134 units in 2010, and to 54,285 units in 2011, the treasury said.

In another move to raise government revenue the taxes have also been raised for imported beer and sales tax for cigarettes and local beer.

Lanka hikes tax to curtail auto imports; to impact Indian companies - The Times of India

 

[Lankan Ranger]

Prices of Indian made 1000 cc cars, three-wheelers & motorbikes increased….

Now reconditioned Japanese cars will be the same prices of Indian cars…..

 

[jbond197]

Good luck with a Chinese car then!! Have a safe drive!!

 

[Shinigami]

Vehicle imports have gone up from 3,421 units in 2009, to 37,134 units in 2010, and to 54,285 units in 2011, the treasury said.

Lanka hikes tax to curtail auto imports; to impact Indian companies - The Times of India

no bloody wonder, its HUGE

 

[Lankan Ranger]

no bloody wonder, its HUGE

HUGE Because......

 

[protest]

I just think it will be hard on an average Srilankan than India. India makes over 4 million vehicles every year. Few thousand cars less wouldn't make much of a difference.

 

[rai_kamal]

I don't think there is nothing anti-india specific, it's just to increase the government revenue which is good for srilanka..

 

[Bachchu Yadav]

Prices of Indian made 1000 cc cars, three-wheelers & motorbikes increased….

Now reconditioned Japanese cars will be the same prices of Indian cars…..

Dude , You know nothing about external trade and act as self appointed professor.

Due to WTO regulations , no country can impose custom duty specific to one country unless in special circumstances such dumping.

SL has imposed tax irrespective of country of origin. It'll impact Japanese firm as same way as Indian firm.

 

[perplexed]

As someone already pointed out, we produce more than a million cars. A few thousand less won't even make a dent on the calculations of balance sheets.

 

[Big Boss]

What a developed country with trillion dollar economy have done it??? What a big market and big loss

Its stupid idea of Sri Lankan govt. now local people will have to shell out more for quality products.

 

[Skyline]

This tax increase is not targeting specific country. There aren't huge market for Indian cars either. Indian vehicles found here mostly heavily vehicles and bikes and tuk tuks.

 

[JanjaWeed]

this is not India specific.. is it? Ofcourse.. if you quote TOI, it's going to highlight the impact on Indian exports to SL. Hike in rate of duty is across the board.. regardless which country you import from!! so this impacts every country that exports automobiles to SL... not just India.

 

[manojb]

Well.. we voted against them in UN. what do u expect? Some of these cars/parts r made in TN.

 

[ahfatzia]

This tax increase is not targeting specific country. There aren't huge market for Indian cars either. Indian vehicles found here mostly heavily vehicles and bikes and tuk tuks.

I think that's a very good idea for Sri Lanka if she can use those taxes to benefit her public transportation infrastructures. A beautiful island with fewer cars is a long term gain for the country. Private cars are a luxury we can do with less.

 

[Lankan Ranger]

Dude , You know nothing about external trade and act as self appointed professor.

Due to WTO regulations , no country can impose custom duty specific to one country unless in special circumstances such dumping.

SL has imposed tax irrespective of country of origin. It'll impact Japanese firm as same way as Indian firm.

It is not a country specific, but more Indian bikes and tuk tuks in Sri Lanka then anyother...