28 October, 2020

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Amidst New Vehicle Tax Revision, Ravi K’s No Confidence To Be Taken Up Next Month

The no confidence motion against Finance Minister Ravi Karunanayake is scheduled to be taken up for debate in Parliament in early June.

Finance Minister Ravi Karunanayake

Finance Minister Ravi Karunanayake

In March, the Joint Opposition handed over a no confidence motion with 37 signatures, on grounds that Karunanayake had misinterpreted facts about the economy and had also falsified information in the national budget presented in Parliament.

The decision to hold the debate on Karunanayake’s conduct comes just days after the government decided to increase the minimum unit tax for vehicles above 1000CC, which according to the Vehicle Importers’ Association (VIA) would result in a huge blow to them as there will be a decrease in vehicle purchasing due to the new tax revision.

With the new tax revision, the tax on a three wheeler alone comes to Rs. 400,000, while the tax on a Toyota Prius which stood at Rs. 3.3 Million will increase to Rs. 7.2 million, while the tax on a Maruti Alto, which was Rs. 800 000 will increase to Rs. 1.2 million.

The Value Added Tax was also revised in May from 11% to 15%.

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Latest comments

  • 9
    0

    It seems that Ravi K’s enhanced duty free vehicle permits to fellow parliamentarians has not done him any favors.

    MPs have the privilege of importing high value vehicles without any import duty payable while the rest of the people have to subsidize the cost of these vehicles with increased import duty, even on a 1000 cc basic car. Since a new car is beyond the reach of a majority of people, older cars which are inefficient, polluting & well past their life span will be on our roads longer & that means wasting more FOREX on importing spare parts (most of it spurious or second hand junk) to keep them going. It’s just like an old man being kept alive with pep pills instead of letting him die naturally. A few years ago, UK & a few European countries gave financial incentives for old vehicle users to scrap their old bangers & buy new car instead. It has been proven that the cost of maintaining & the benefits of keeping an old car in terms of repairs (older the car, the more the repairs), fuel economy / pollution (old technology), & safety (modern cars undergo stringent safety tests) does not make sense, yet only a privileged few in Sri Lanka are able to enjoy the benefits of a new vehicle.

    Wonder where Ravi K got his economics degree, that is if he has one.

    • 2
      0

      Raj

      “It seems that Ravi K’s enhanced duty free vehicle permits to fellow parliamentarians has not done him any favors. “

      So, Rs. 20 Million a piece tax favor and windfall has not done him any favor, yet? Wait and see, in the end nothing happens. This is all just show and tell.

      “Wonder where Ravi K got his economics degree, that is if he has one.”

      You don’t need one. Ask Wimal Buruwansa of 2/2 =0 fame and many others.

  • 0
    0

    [Edited out]

  • 12
    0

    what a shame that Ravi K keeps increasing vehicle taxes while the Govt does nothing to improve public transport

    I feel all MP’s should be banned from using luxuary SUV’s,BMW’s,Mercs,Volvos and given basic mahindra jeep (with ac) for thos in rough terrain areas and city MP’s given Maruti Altos

    After all they say they want the serve the people right?

    LOL

    • 0
      0

      Peace Lover

      “After all they say they want the serve the people right?”

      Right!. They say, we are the people! They are serving all right.

  • 2
    0

    All jokes.

    It is same alibaba and forty thieves .

    • 0
      0

      Now we have Ali Baba and eighty thieves! Hooray Silly Lanka! Your crooked politicians will now rape and plunder you even better than before.

  • 2
    1

    This man had a bad reputation even before his appointment as Finance Minister and his performance so far has been nothing to write home about, in fact, has been highly questionable with absolutely no relief for the public.

    There is also the question of nepotistic appointments by him.

    However, judging from the Yahapalanaya promises, looks like this is par for the course, so let’s not hold our breath for any ‘justice’!

    Anyway, let’s hope the impeachment process will be fair and a just conclusion follow!

  • 4
    0

    Look at our vehicles policy.

    Politicians given unlimited cc vehicle permits almost for free so that they could either travel in super luxury comfort or sell it and earn a thumping profit.

    Below par govt servants who are a burden on society are to be given duty free car permits again as an incentive to continue to be a burden on society and do no productive work during the day.

    Private sector professionals and entrepreneurs and businessmen have to buy a Toyota Prius for Rs 10 million or a Nussn X Trail for Rs 12 million!!!

    I am waiting for the yahapalanaya govt to deliver on its promises.

  • 3
    2

    I don’t think even the Yahapalana Prez , Bodhi Sira has any confidence in this dude, after he let Batalanada’s Singaporean mate fix the first Bond issue, with over 2.5 % t cut going to his Family Trust.

    And a bit of that into the UNP Election Slush Fund .

  • 5
    0

    How many No Confidence motions! they are targeting the Gov by targeting FM,.
    two such motions got very poor vote and now they are coming with another new stunt,. waste of time. few vehicles price got reduced and luxury vehicles price went up,. its good.

  • 1
    0

    Reverting to transaction price is a recipe for under invoicing and allowing the some customs officers and importers to make money. There should be at least some checks and balances to ensure that this does not affect the revenue adversely. One way is to use a computer generated statistical model where the transaction value is accepted, only if it is not more than 5% below the statistical average.

    The wide variations in motor vehicle prices is highly undesirable. It is the duty of those responsible for the tariff policy to ensure that tariffs are stable & predictable.

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