(May 02, Colombo, Sri Lanka Guardian) It is in the public interest to disclose the massive earnings by the Treasury on new cars purchased by the fortunate few. Perhaps our envy should turn to gratitude to those buyers who are fleeced by the Treasury.
The rates of the State dues to be paid is legislated in percentages. Looking at these percentages they look quite reasonable. It is in the implementation by the various authorities that the rates became massive when expressed as percentages on the CIF rupee value of the car. It may be that it was not the intention of the legislators that the percentages be applied on a sum other than the OF value-of the car. It may be that the collecting authorities which we given cash collection targets by the Finance Ministry / Treasury are resorting to illegitimate methods of calculating the charge to meet the targets set for them. Additionally several collecting authorities have bonus schemes for the government servants in them, which bonuses are related to the collections. Some government servants collect huge incentive earnings, which they craftily overlook to mention when disclosing their emoluments to the public.
Having collected large sums by stripping the buyer of cars, the spending authorities with the connivance of the ministers, squander the collections as we see reported in the media so often.
It is time that the public is made aware so that every time citizen Perera in a bus queue sees a new car flashing past, he will remember how much was contributed to a profligate State and bureaucracy.
Here are the figures for a new car with a OF cost of US$ 12,500. (say Rs. 1,375,000). This is the money that goes out of the country. This is by no means a luxury car, but a popular 1500 cc petrol car like a Toyota Corolla or low end Nissan, Mitsubishi Lancer, Fiat etc.
The Excise duty and the VAT dwarfs the other levies. Unlike the other VAT, the Import VAT cannot be set off, and is thus a non refundable expense.
Total of levies paid is Rs. 2,822,390. This is 205.4 % of the CIF rupee value!
For luxury cars the levies are much higher.
So my friends remember when we are in the bus queue, and a "duty free’ car flashes by, the elitist (only they get the benefit) owner has received a gift from the Treasury of Rs. 2,822,390 or nearly that. And when the duty paid car passes by, remember he has contributed to the Treasury the same sum.
It would be a good idea to have stickers on the rear glass of the car.
"I have received from Sri Lanka a gift of Rs. ....for this car" or "I have paid to Sri Lanka Rs. .... on this car"
- Sri Lanka Guardian
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