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| Sunday, 31 October 2004 |
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Business |  |
| News Business Features Editorial
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Vehicle prices climb by Hiran H.Senewiratne The government is unable to stop the increaseing price of old stocks of motor vehicles and also vehicles that have been ordered before the increase of the Excise duty. The government has shown keen interest to give some relief both to vehicle importers and buyers on this issue, but it is not legally possible, Director of the Department of Fiscal Policy of the Ministry of Finance S.R. Attigala said. He said that earlier the government was trying to do something for old stocks of vehicles and also vehicles ordered before October 14 and added that it was unable to do so due to some legal implications."We can't go backward and change anything at this juncture," he noted. Attigala emphasised that in this scenario most car dealers would enjoy high profits with this new excise duty increase, especially on old stocks currently in their showrooms. United Motors Deputy General Manager Chandima Jayathilake said that these days they are having board meetings on this issue and it would probably be a price revision regarding old stocks of vehicles, to cover the stockholding interest. Vehicle dealer cum senior member of the Vehicle Importers Association S.H.M Zakir said that those would be a price revision of their old stock of vehicles with the increase of the excise duty. He said that they have to balance inventories with old price against new price to survive in the business. "The prices of old stocks of vehicles that are available in our showrooms will be increased very soon," Mercantile Investment Ltd Deputy Chairman Gerard Ondaatjie said. He said that without increasing prices of existing stocks they cannot cover their overheads in the business. Carplan KIA Motors Ltd Mahen Thambiah said that they don't have a fleet of vehicles in their showroom but have only few vehicles in the showroom, which was on for display. He said that currently a vehicle shipment is due at the Port and added that they had already paid excise duty for that shipment at the point of clearance.In future prices of vehicles will be increased considerably, he added. DIMO company spokesman said that to cover the stockholding interest, of existing stocks of vehicles the company intends to increase the prices of old stocks. The prices of old stock would be increased but it is less than new revised price, to cushion the loss. |
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