EconomyNext – Sri Lanka’s new vehicles registrations have surged to unprecedented levels topping 50,000 a month for two months, led by motorcycles, an analysis by an equities research report shows.
JB Securities said in a report using data from Sri Lanka’s vehicle registry that 35,462 motorcycles were registered in October 2014 up from 15,878 a year earlier, and 37,592 in November, up from 14,644 a year earlier, driven by subsidized vehicles to state workers.
Sri Lanka’s ruling classes tax citizens heavily like serfs and peasants were taxed centuries before and give themselves tax privileges like feudal overlords did then.
Elected rulers get tax free cars, and state workers tax slashed cars. Critics say the latest discrimination against ordinary citizens, critics say is to give state workers motorcycles at 45,000 rupees while citizens pay around 200,000 for a motorcycle.
Total vehicle registrations at 51,980 in November is higher than the 48,199 reached in May 2011 shortly before money printed to finance energy subsidies pushed Sri Lanka into a balance of payments crisis.
Sri Lanka has not yet seen a significant struggle for tax equity unlike peasants revolts Europe as elected rulers still drive policy in the country and citizens are not active and freedoms can be easily undermined.
A lower level of tax in hybrid cars has made cars more affordable to ordinary citizens.
There were 2,862 hybrids registered in November, slightly lower than the 2,962 units in October but sharply higher than 1,153 units a year earlier.
Of that 1,699 were cars ( Toyota: Aqua – 567 units, Prius – 258 units and Axio – 284 units and Honda: Fit – 484 units, Freed – 14 units and Insight – 11 units).
In the SUV hybrid segment 1,122 Honda Vezel units were registered in November, the highest ever, topping Octobers figure of 1,122.