Sudden valuation change increases prices of 3 Japanese car brands
View(s):Prices of certain models of Japanese vehicles will rise following a sudden change in the valuation system made by Customs to increase its revenue with effect from Tuesday, November 1.
This unexpected move has perturbed motor traders and confused prospective buyers on the eve of the presentation of the 2017 budget, motor traders and customers complained.
The taxes on at least three models of vehicles, Toyota Allion, Toyota Premio and Honda Vezel will increase prices by Rs.300,000 to Rs 350,000 under the new taxation system, motor traders said.
They pointed out that at least 200 -250 vehicles are being imported to the country monthly and the total tax payable for those vehicles was in the region of Rs. 4 to 4.5 million under the previous valuation system introduced in May this year.
“No leeway was given for vehicles already ordered, and Customs is now charging this high tax on these vehicles and the motor traders will have to either levy the additional cost from customers or absorb it themselves,” Ashok Ganwani, Director – Lekhraj Automobiles (Pvt) Ltd told Business Times.
Motor traders have opened LCs and placed orders to import vehicles according to the preference of buyers at least two months ago making their costing in accordance with taxes that prevailed at that time, he said.
Finance Minister Ravi Karunanayake had promised to maintain the current taxation for at least another two years without making ad hoc changes, but in practice the Minister has failed to keep his promise intact for not more than five months, he added. (Bandula)