Sri Lanka Raises Excise duty on Indian Vehicles by 73%

Discussion in 'Politics & Society' started by Daredevil, Dec 10, 2012.

  1. Daredevil

    Daredevil On Vacation! Administrator

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    This could become the second instance, after the eviction of GMR Infrastructure from Maldives, where Indian companies suffer high handedness of India’s tiny neighbours with the government remaining a silent spectator.

    Last month, Sri Lanka suddenly increased excise duties for all kinds of automobiles from India by exorbitant amounts and if the island nation remains unchecked, this could spell the death of Indian automobile exports to Sri Lanka.

    Not only were duties increased exorbitantly for Indian imports, the Sri Lankan government has apparently simultaneously reduced duties for vehicles coming from other Asian markets such as Japan.

    Not only were duties increased exorbitantly for Indian imports, the Sri Lankan government has apparently simultaneously reduced duties for vehicles coming from other Asian markets such as Japan. Reuters

    Unable to take the duty blow, exports of cars from India have already reduced by 90 percent where those of two-wheelers are down 60-70 percent. Sri Lanka is one of the largest export markets for Indian cars, two-wheelers, trucks and buses.

    One in eight vehicles manufactured in India and exported found their way to this market last fiscal, with Sri Lankan exports netting $800 million to Indian automobile manufacturers.

    A senior official of the Society of Indian Automobile Manufacturers (SIAM) said today that Sri Lanka has increased excise duty on passenger cars by 73 percent to make it 173 percent, it has imposed an new excise levy of up to 45 percent on three-wheelers, an additional Rs 10.09 lakh duty has been imposed on commercial vehicles while motorcycles will have to pay 51 percent levy.

    A story in Sri Lankan daily The Sunday Times speaks of prohibitive duties edging out Indian vehicles “while exemptions to those coming from Japan will give them an added advantage in the market”.

    This story also speaks of the Sri Lankan government clearing a Chinese investor’s application to set up a car assembly operation at two locations in the country for $20 million.

    The SIAM official quoted above said if these reports are true, this could prove to be a double whammy for Indian automobile industry since as per an earlier SAFTA agreement (South Asian Free Trade Agreement) India has provided zero-duty access to products from SAFTA countries (including Sri Lanka) but does not enjoy the same privilege in these countries.

    “This effectively means the Chinese company setting up a plant in Sri Lanka can export automobiles to India at zero import duty. If that happens, we will be hit from all sides,” said this SIAM official.

    The Sunday Times story quoted an anonymous customs official saying “a technicality placed imports of cars from Japan at an advantage. While 80 percent of the cars imported into Sri Lanka are from India and under 1000cc engine capacity, no such vehicles are brought from Japan”.

    Another story in Sri Lankan newspaper Business Times points out that the government there has “controversially reduced duties on racing cars while increase excise duty on small cars with engine capacity of less than 1000cc.

    The Sunday Times story also quoted a car importer as saying the Maruti Alto would become more expensive by at least Rs 250,000 after the excise increases.

    Other importers said the price of Indian trucks would increase by more than Rs 10 lakh. Till end-October, more than 5,000 cars were lying with dealers in Sri Lanka, waiting to be re-exported back to India because of exorbitant duties. The SIAM official said his association was in dialogue with the commerce ministry to sort out this excise issue.

    But just like in the case of Maldives seizing their airport from GMR’s control, perhaps in this case too India may finally remain a silent spectator.

    Lanka does a Maldives, raises excise on Indian vehicles by 73% | Firstpost
     
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  3. sob

    sob Moderator Moderator

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    time to kick some serious ass and reciprocate.

    First of all hike Visa fee by 500% and also the import duty on Sri Lankan Tea and Garments.

    Also the Government should take this to the WTO and get this struck down.
     
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  4. Blackwater

    Blackwater Veteran Member Veteran Member

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    it means sri lankan going to import water car from Pakistan :laugh::laugh:

    it means sri lanaka ka matlab bhi .LA ILAHA ILLA ALLAH:thumb::thumb:
     
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  5. Patriot

    Patriot Senior Member Senior Member

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    Please train somebody from Prabhakaran's family for the next leadership & provide the local tamils shoulder launched SAM.
     
  6. sasi

    sasi Senior Member Senior Member

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    Indian automobile industry finally paying the price for supporting UPA 2 !
    ~It is funny to see those who upeat abt congress 2yrs ago in foreign conclave now facing heat !
     
  7. Joji

    Joji Regular Member

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    I dont understand what kind of foreign policy India has? All agreements like bilateral etc. seems to be in favor of other party. What is the need of signing each and every treaty, agreement? for eg- Kyoto protocol Countries like USA, Canada dont give a damn to these agreements, treaties. Only India does chest thumping on any agreement or treaty. What is the outcome? Some foreign company if not satisfied with Indian laws screw India in International courts and seek heavy penalty. Whereas, Indian companies got their a$$ kicked everywhere like in Maldives (GMR) recently. GMR issue is a big setback to India's foreign policy still they dont learn. Simply, shy away by saying it is a private company matter. Whereas, Vodafone on issue of clayman deal went to court and got IT dept. clueless. End result--retrospective law amendment!!
     
  8. mushahary

    mushahary Regular Member

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    Is it applicable only on Indian companies or India based foreign car manufacturers as well,:shocked: because if that so than except for Chinese cars all the Hondas, Hyundais , Ford etc which are manufactured here will cost a lot in Srilanka unless ofcourse they import it from other countries..:rolleyes:
     
  9. Dovah

    Dovah Untermensch Senior Member

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    Only for India, they've actually decreased duty on cars from Japan and other Asian manufacturers.
     
  10. Dovah

    Dovah Untermensch Senior Member

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    I think we should suck it up. Sri Lanka is a valuable ally that might move to Chinese camp if we do something as offensive as looking out for our nation's interest.
     
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  11. Anoop Sajwan

    Anoop Sajwan Regular Member

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    Bravo!!!!
    What a decision.:lol:
     
  12. Defcon 1

    Defcon 1 Senior Member Senior Member

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    I have one question. Wouldn't this move be illegal according to provisions of WTO? I mean each nation should be given same tariffs right?
     
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  13. Defenceindia2010

    Defenceindia2010 Regular Member

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    Time will teach these little :ka: neighbors be it SL,BD or ML a lesson. They are favoring China and making strategic and tactical choices similar to what Cuba made till the missile crises but they have forgotten to factor in one critical fact none of these countries are CUBA, time has come to act according to our size ''IF THIS NATION IS READY''. :mad:
     
    Last edited: Dec 10, 2012
  14. Yusuf

    Yusuf GUARDIAN Administrator

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    Violation of SAFTA? Rajapakse has totally become a Chinese stooge. What the eff is RAW doing? They need to start to sabotage the government there.
     
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  15. agentperry

    agentperry Senior Member Senior Member

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    complete failure of foreign policies. GoI needs to address and important issue that what they want- serious hitmanship like usa for its companies or dumbassship like what they are doing to continue appeasing shit size nations at the cost of domestic companies
     
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  16. warriorextreme

    warriorextreme Senior Member Senior Member

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    Our reply should be complete ban on srilankan imports and we should start conquering srilankan export markets...
     
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  17. afako

    afako Regular Member

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    delhi B*itches, Congress B*itches, Socialism, Communism, Nehruvianism, Baptism, Islamism and every other other -isms out there.

    Suck up to the Sh!t like our Stupid Capital does and you have World's Largest Number of Poor People!

    Elect Congress and Enjoy 2 Billion Poors after 60 Years with 400 Million Muslims and 5 More Christian Majority States.

    Paapi Jhapi with Pakjabis, WKKs having Chai Biskut with a Person who waged a War against the Country in our Dumb F**ck Capital along with JNUs!

    No Wonder the Stupid Capital should have been sent to Pakistan in 1947 only!
     
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  18. Dovah

    Dovah Untermensch Senior Member

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    ^^ Listen to this dude. He knows.
     
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  19. afako

    afako Regular Member

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    Yet Tata Motors pulls $11 Billion of the Chinese People hand every year growing at 50% p.a.

    JLR Sales in China = $5 Billion + 110% Import Duty amounting to $6 Billion(which goes into hand of Corrupt CPC).

    That's called Capability!
     
  20. roma

    roma NRI in Europe Senior Member

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    GOOD POINT AND WORTH PURSUING - but other thatn that we shouldnt be bothering with the tinny market SL - rather shd be much more concered with the latin american market - they are huge and they arent into all this silly china- india rivalry as SL :toilet: thinks they can play a pivotal role........ LatAm market much better and more india -friendly as well
     
    Last edited: Dec 11, 2012
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  21. hit&run

    hit&run Elite Member Elite Member

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    They are negating whatever trade clout you have. Next on their menu is free trade treaty with China like Pakistan has ?
     

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