As news stated the Customs Director General Jagath Wijeweera inform the customs department is deciding on the value of brand new vehicles instead of accepting the declaration by the importers.
This has decisions has make in the detail investigation on vehicles importers undervalued the vehicle valuation while imports, its including few leading companies too.
This approach has reduced tax incomes to the government which is a considerable amount in total. Therefore the customs has set up valuation committee to determine the value of the vehicle and thereby impose the valuation tax.
The New taxation systems are expected to lead to a vehicle prices increase between Rs. 400,000.00 to Rs. 500,000.00. But this system will help government to raise their tax revenue to the government.
It is expect to be applies for those who imported and yet to clear them.
Factors to Consider before and after implement this New Tax System – Personal Opinion
Before implement this new tax scheme
- Makesure it is not to impact to the law budget vehicles which are mostly purchases for the self-businesses or small businesses like three wheels, Small cars for Budget taxi and motor bikes.
- Understand the weakness and wholes in old tax systems and make alerts to income tax department or customs to be aware of those lopes whole.
- Consider the cost of living index and increase accordingly, rather increase just because of maximise revenue
- Take actions against those who violate and get penalties for their wrongful behaviour
After implementation this new tax scheme
- Makesure its not harms to low income or middle income class who dreams to buy a small cars or basic model of vehicles
- Rectifies all the lopes whole and avoid any fraud to comes in future
- Educate importers and customs about the new vehicle import tax system and avoid any under pricing in future
- Be tight with rules and regulations and need to take actions against those to violating this new impose tax systems.