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Thursday May 6th, 2021
Economy and Markets

Brand new car dealers benefit from car tax revision, used cars, hybrids sharply up: report

COLOMBO (EconomyNext) – Small cars imported brand new by large dealerships will fall by around 100,000 to 150,000 rupees but the price of used hybrid cars and some other vehicles and other cars will shoot up by about a million rupees, an industry official has said.

Mahinda Sarathchandra who represents an association motor car dealers importing used cars was quoted by Sri Lanka’s Daily Mirror Online, as saying that the scrapping of a ‘depreciation table’ for used cars had hit the used or ‘reconditioned’ car importers hard.

The depreciation table allowed the value of a car to be reduced for customs purposes based on how old it was. The price of a used hybrid Japanese car would go up by around 700,000 to a million rupees, Sarathchandra said.

He said Indian made brand new cars below engine capacity of 1000cc would may fall by around 100,000 to 150,000 due to a cut in taxes announced in the budget, but small used cars brought from Japan will only fall by about 25,000 rupees.

He said importers of used cars, who bring down about 15 to 20 cars were now in a financial crisis as they had to fork out about 15 million rupees more to clear the vehicles.

Sarathchandra said the price of used vans may also go up.

We know that the government needs taxes to finance the reliefs given to other sectors but the increase in taxes on used cars is very high.

Brand new car dealers have got a big benefit, he said.

 

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