2013 BUDGET AND VEHICLE

Taxes of small cars to be increased, the market will drastically fall in 2013

Signs of the prizes of small cars hitting a minimum of Rs.22 lacks

Prizes of vehicles were increased few months ago as a result of the increase of vehicle import tax which was done unexpectedly. Previous statistics have shown that vehicle registration has gone down since due to this reason. Yet, everybody expected that tax problem would be a temporary one and that vehicle tax would be cut down after the budget in November. Some have been waiting to buy vehicles after November. Yet the budget which was read out on last Thursday has disappointed and destroyed the hopes of the majority as only the taxes of racing cars had been reduced. It was also said that the government is planning to increase the registration fees and the revenue license fees as the roads have been developed and well maintained. Therefore it had been proposed to increase these fees from the 1st of January 2013.
It had been said that sports is a field which would bring an income to Sri Lanka and that importing racing cars will be a method of earning more money and thus it has been proposed to reduce the tax of imported racing cars by a huge margin. Nothing about the other vehicles was mentioned in the budget and the news on increase of tax on 1000CC vehicles came much later.
It is reported that tax of imported 1000CC and vehicles below 1000CC will be increased up to 4 lacks. Therefore, the market of small vehicles (1000CC) which the majority of middle class people were anticipating to purchase, have got their hopes foiled as they  will be marketed for a minimum of Rs 22 lacks. Simultaneously, second hand vehicle market too will rise.
Sampath Merenchige, President of the vehicle import Association stated that importing vehicles would not be profitable anymore. He has also stated that a tax of 15% has been increased on importing heavy vehicles above 5 tons and that this has placed the import companies in jeopardy.
Mahinda Sarathchandra of the Trade Union of Vehicle Importers point out that:
“Sales of vehicles were very low before the budget as the people expected that the prizes of vehicles will go down but unfortunately, now they are not able to buy vehicles at all. Due to this prize of vehicles will be going up further and the market will fall apart.”
Rumours are being spread of the decrease of taxes on importing racing cars and many comments are been made and published sarcastically. Watch the funny video on what Hitler is saying about decreased taxes of racing cars from BELOW: