Thursday, October 8, 2015
How pathetic is it to already expensive vehicles to increase the Duty further?
It is plain wrong of the Finance Minister to even hint at a duty raise in the budget. http://www.dailymirror.lk/90093/vehicle-import-levies-to-be-applied-after-budget-ravi
The price of vehicles in Sri Lanka are unconscionably high, and just the threat of raising it further is purely an attempt at enriching the people (traitors for want of a better word) who buy cars from overseas and keep them unregistered in their lots knowing full well that by just holding them, they will make money, instead if just putting the money in the bank.
This encouragement of keeping unproductive capital wasted on Car lots, rather than being used to develop the economy is further encouraged by this statement of the Finance Minister, unless of course he is smart, where he actually reduces the taxes, especially on Electric and Hybrid Vehicles as he should to encourage conservation.
For some unknown reason Sri Lankans have a love for cars, and spend a very high proportion of wealth on the motor car, even though it is just a vehicle to get from A to B, and many wealthy households have numerous vehicles as it is considered to be better than money in the bank that has not been declared, and the black money in cars is safe, the value of cars seem to rise instead of fall!
INSTEAD OF THIS ASININE and childish ruse, the Budget should increase the price of fuel by at least Rs25 a liter for both Petrol and Diesel to bring down the road congestion as it is BOTH POLLUTING AND A HUGE DRAG on the balance of payments. Further a one off Rs15,000 tax on all vehicles including motor bikes registered in the last 5 years, will suck a lot of excess liquidity from the market. Hell this will be unpopular, but so what as this govt. has 5 years to run, and by this masterstroke can get the economy back on even keel, without another worry in the world!
So Ravi Karunanayake, I have given you the best advice any rational person can give, and if you follow my advice I can assure you, most of the battles you are trying to solve will come good. Also the renegotiation of high interest foreign loans into low interest ones, and the forward purchase of oil at the US$40 equivalent for 5 years before the new refinery comes on stream will be the master stroke that saved the day for this economy. You will be hailed a hero, but the downside is you will not have been able to siphon some funds into your personal pocket illegally as is your wont. But hey as a good Christian this is your chance to go to Heaven as another would take you straight to Hell!