Vehicle imports before the most recent taxopolypse.
Taxes have spiked on car imports, like, a lot. Sri Lanka traditionally has high taxes on cars – up to 300%. After the war the taxes were dropped (briefly to near zero on hybrid cars) and people went on an orgy of vehicle buying. Now, however, it looks like the party is over. The price of a motorbike has gone up by Rs. 50,000, a Maruti costs Rs. 450,000 more and the price of a hybrid has gone up by almost 1 million.
This sucks, but the people who are really stuck are those who have paid a deposit to import a car and now suddenly have another million or so on the bill. I heard about this happening to someone importing a Porsche earlier and didn’t much care, but I suppose it affects people buying Marutis also. I talked to another friend whose father just had a bill go up by Rs. 3 million. I mean, people are simply getting screwed here.
|Vehicle||Old Price||New Price||Increase||Tax Increase (Percentage)|
|Motorbike||Rs. 165,000||Rs. 215,000||Rs. 50,000||51%|
|Three-Wheeler||Rs. 390,000||Rs. 490,000||Rs. 100,000||40%|
|Van||Rs. 4,300,000||Rs. 4,700,000||Rs. 400,000||41-114%|
|Maruti 800 (Petrol Car)||Rs. 1,100,000||Rs. 1,550,000||Rs. 450,000||Rs. 85-129%|
|Hybrid Car||Rs. 3,700,000||Rs. 4,700,000||Rs. 1,000,000||14-57%|
As you can see, the prices were already high. Now it’s quickly getting back to prohibitive. The source here is the print edition of the Daily Mirror. I reproduce here because their ePaper is largely unusable and un-linkable.
The government obviously has money problems, but it may not be as simple as directly raising money. I think they made more money when taxes were lowered simply because people imported so much. In this case I think they’re actually trying to depress demand, perhaps to decrease fuel imports. Fuel prices have also spiked, so there’s considerable pressure there already.
The thing is that vehicles and transport are one of the clearest correlates with growth. When you depress peoples ability to travel, you also depress the economy. Which is depressing. And, to add insult to injury, they’ve also increased taxes on cigarettes and alcohol. That said, my used car just went up in value. If you’re looking.