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FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » Present gvnmt-worst economic managers ever had????

Present gvnmt-worst economic managers ever had????

+8
Slstock
kam2011
WildBear
mono
sriranga
Rajaraam
Universalgoal
dindon1
12 posters

Go down  Message [Page 1 of 1]

dindon1

dindon1
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

We never saw smooth transition of any policy by current government in the past.,
They have taken taxes down by surprise few months ago.,(For sure it was not a surprise to insiders of the family business.) But now they have imposed heavy taxes again by surprise.,
Is this the way that reputed economic managers governing a country??
Why no one come out and loud their opinion???
It is a bunch of rigid and rough decision makers that we see., instead this country should have smooth policy transitions.,Remember what happened to CSE.,Putting up new policies and taking them away overnight and messed the whole thing up.,So many uninformed individuals lost so many things because of this behavior.,
I see,main problem that we have here is not having a strong opposition party.,
What are your thoughts??

http://www.lbo.lk/fullstory.php?nid=403211186



Last edited by dindon1 on Wed Apr 04, 2012 2:40 pm; edited 1 time in total

Universalgoal


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

1000% agree foolish and hearless tax impliment on peaples head Evil or Very Mad

Rajaraam


Vice President - Equity Analytics
Vice President - Equity Analytics

dindon1 wrote:We never saw smooth transition of any policy by current government in the past.,
They have taken taxes by surprise few months ago.,(For sure it was not a surprise to insiders of the family business.) But now they have imposed heavy taxes again by surprise.,
Is this the way that reputed economic managers governing a country??
Why no one come out and loud their opinion???
It is a bunch of rigid and rough decision makers that we see., instead this country should have smooth policy transitions.,Remember what happened to CSE.,Putting up new policies and taking them away overnight and messed the whole thing up.,So many uninformed individuals lost so many things because of this behavior.,
I see,main problem that we have here is not having a strong opposition party.,
What are your thoughts??

http://www.lbo.lk/fullstory.php?nid=403211186

dindong, I agree with you friend.What a foolish action taken to solve BOP issue. These type of mad decissions would create a lot of problems in the economy.Firstly all ppl who had opened LCs to import a vehicle are in severe trouble now coz they will have to find additional money to meet the increased cost(50%-70%).Secondly, PPl who sold vehicle last week to buya new one are now suffering.(coz they would have got more money if they sell now than last week) Thirdly ppl who planned to buy a vehicle before new year are also suffering coz they cant buy now at the price they expected. Fourthly all businessmen who had opened LCs will have to pay higher duty and block capital for longer period as sale volume would be drasticaly dropped.
Most importantly foreign and local investors get scared to invest in business here as sudden tax increse will cause to crash any business within a short period. Therefore no one is willing to take such a risk as tax pollicy is beyond their controll and authorities are not willing to cunsult trade/industry chambers or public before take crucial decissions like this.

sriranga

sriranga
Co-Admin

Apr 04, 2012 (LBO) - Sri Lanka's sudden hike in car taxes has taken the International Monetary Fund by surprise, and the lender would like to see tighter monetary policy than selective taxes, its resident representative said.

"The issue of recent taxes on vehicles and other goods, that actually is something we did not discuss with the authorities at all," IMF's resident representative Koshy Mathai said.

"We were not expecting it. We were happy to see that it shows that they are taking this balance of payments crisis issue very seriously. They are trying many different policies in order to address the issue.

"Our own view is probably that adjusting tax rates is not always the most productive way of addressing this kind of problem.

"Because, yes, it certainly true that the rise in vehicle imports was part of the widening of the current account of deficit last year.

"But whether it is appropriate to do selective tax increases to combat it - rather than more generalized instruments that are less discriminatory and apply more across the board - whether that is the more appropriate approach is something we had some concerns about."

Monetary Problem

Pressure on a currency peg comes from excessive credit growth and full scale balance of payments crises are caused by sterilized sales of foreign currency by a central bank that tries to control the exchange while printing money by sterilized sales of foreign exchange.

Mathai said the IMF would like to see a rise in policy rates.

"One thing we have talked about in the past is monetary tightening," Mathai said. "I think there has been a policy rate hike. We've seem market rates rise by more than that.

"So there would there be a case for raising policy rates to match what we had seen with market rates. Those are more the lines in which we are thinking."

Trade controls were widely imposed on people during the Bretton Woods era by rulers of many countries including Western ones until the arrangement collapsed in 1971-73.

Even the United States briefly imposed trade controls during the so-called Nixon Shock, backed by pro-establishment economists around the time it closed the gold window and defaulted on the Bretton Woods agreement.

The US dollar collapsed against gold after the Fed printed money to keep rates down while the state deficit spent for the Vietnam War and the 'Great Society' programs of the then administration.

Nixon imposed a 10 percent surcharge on all imports, something Sri Lanka also did during the 2000/2001 balance of payments crisis.

Sri Lanka imposed severe trade controls on the people in 1970s in particular.

Fiscal Goal

Reduced car imports, due to high taxes can reduce state tax revenues expanding the deficit and putting further pressure on credit, interest rates and the currency, worsening or prolonging the underlying problem.

Last year the state earned tens of billions of rupees from car taxes, which were painlessly imposed on the people.

Mathai said he was not sure whether new taxes would be needed to make up for lost revenues from cars but he was confident that the fiscal authorities were fully committed to meeting targets and would flexible and to counter any problem that arose.

"That said, that is one basic reason that we are not big fans of adjusting tax rates up and down in this sort of manner," Mathai said.

"It is helpful to have a set tax structure that applies, and continues to apply gives some stability and certainty to the market."

Cigarette and alcohol taxes were also raised at the same time.

In Sri Lanka taxes including basic goods can be arbitrarily raised by midnight gazette without debate in parliament literally while citizens are sleeping.

The pathetic pleas of victimized citizens appeared on the finance ministry's website after the car taxes were suddenly raised over the weekend.

"Please consider allowing the old tax for already shipped vehicles as importers are in deep trouble due to sudden increase of taxes," said one poster on the website.

"If vehicles are shipped they are have no other alternative other than getting the vehicles cleared paying amounts not worth."

"Did u think what happen to our plan who already shipped vehicle?," asked another citizen. "So plan to also send a bottle of poison to us."
http://lbo.lk/fullstory.php?nid=403211186

http://sharemarket-srilanka.blogspot.co.uk/

mono

mono
Vice President - Equity Analytics
Vice President - Equity Analytics

The IMF wants us to raise taxes across the board. This may be less 'discriminatory' but a lot more unfair for the majority of the people in this country.

WildBear


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

mono wrote:The IMF wants us to raise taxes across the board. This may be less 'discriminatory' but a lot more unfair for the majority of the people in this country.

Prices of the small vehicles with low engine capacity have increased dramatically when compared to Luxury vehicles and vehicles with higher engine capacity. This is just ridiculous and showed their weak management capability.Factors to consider,

1- Small vehicles are energy saving environment friendly vehicles(some small cars run 15-18 km per liter). They will save Foreign reserves in medium and long run due to fuel efficiency. This is in contrary to Luxury vehicles with fuel efficiency is more than 50 % less to small vehicles.
2-A luxury Vehicle, usually costs around 5 to 10 times a Small budget passenger vehicle, so if you really want to save the drainage of Foreign reserve, you should tax the Luxury vehicle significantly. Razz
3-If SL have a real green policy, Hybrid Vehicle tax should be lowered, but vice verse happened
4-Government tells public to switch off lights and stay dark to save energy and fuel. But many politicians use energy inefficient vehicles with high engine capacity and they need at least 5 such vehicles to move around them when they are traveling. Evil or Very Mad

dindon1

dindon1
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

WildBear wrote:
mono wrote:The IMF wants us to raise taxes across the board. This may be less 'discriminatory' but a lot more unfair for the majority of the people in this country.

Prices of the small vehicles with low engine capacity have increased dramatically when compared to Luxury vehicles and vehicles with higher engine capacity. This is just ridiculous and showed their weak management capability.Factors to consider,

1- Small vehicles are energy saving environment friendly vehicles(some small cars run 15-18 km per liter). They will save Foreign reserves in medium and long run due to fuel efficiency. This is in contrary to Luxury vehicles with fuel efficiency is more than 50 % less to small vehicles.
2-A luxury Vehicle, usually costs around 5 to 10 times a Small budget passenger vehicle, so if you really want to save the drainage of Foreign reserve, you should tax the Luxury vehicle significantly. Razz
3-If SL have a real green policy, Hybrid Vehicle tax should be lowered, but vice verse happened
4-Government tells public to switch off lights and stay dark to save energy and fuel. But many politicians use energy inefficient vehicles with high engine capacity and they need at least 5 such vehicles to move around them when they are traveling. Evil or Very Mad

good point .,

mono

mono
Vice President - Equity Analytics
Vice President - Equity Analytics

WildBear wrote:
mono wrote:The IMF wants us to raise taxes across the board. This may be less 'discriminatory' but a lot more unfair for the majority of the people in this country.

Prices of the small vehicles with low engine capacity have increased dramatically when compared to Luxury vehicles and vehicles with higher engine capacity. This is just ridiculous and showed their weak management capability.Factors to consider,

1- Small vehicles are energy saving environment friendly vehicles(some small cars run 15-18 km per liter). They will save Foreign reserves in medium and long run due to fuel efficiency. This is in contrary to Luxury vehicles with fuel efficiency is more than 50 % less to small vehicles.
2-A luxury Vehicle, usually costs around 5 to 10 times a Small budget passenger vehicle, so if you really want to save the drainage of Foreign reserve, you should tax the Luxury vehicle significantly. Razz
3-If SL have a real green policy, Hybrid Vehicle tax should be lowered, but vice verse happened
4-Government tells public to switch off lights and stay dark to save energy and fuel. But many politicians use energy inefficient vehicles with high engine capacity and they need at least 5 such vehicles to move around them when they are traveling. Evil or Very Mad


Not too many people can afford a 13mn beamer, but a surprisingly large number of people can buy allions & marutis. the hike should hit the vehicles that get imported the most

kam2011


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

WildBear wrote:
mono wrote:The IMF wants us to raise taxes across the board. This may be less 'discriminatory' but a lot more unfair for the majority of the people in this country.

Prices of the small vehicles with low engine capacity have increased dramatically when compared to Luxury vehicles and vehicles with higher engine capacity. This is just ridiculous and showed their weak management capability.Factors to consider,

1- Small vehicles are energy saving environment friendly vehicles(some small cars run 15-18 km per liter). They will save Foreign reserves in medium and long run due to fuel efficiency. This is in contrary to Luxury vehicles with fuel efficiency is more than 50 % less to small vehicles.
2-A luxury Vehicle, usually costs around 5 to 10 times a Small budget passenger vehicle, so if you really want to save the drainage of Foreign reserve, you should tax the Luxury vehicle significantly. Razz
3-If SL have a real green policy, Hybrid Vehicle tax should be lowered, but vice verse happened
4-Government tells public to switch off lights and stay dark to save energy and fuel. But many politicians use energy inefficient vehicles with high engine capacity and they need at least 5 such vehicles to move around them when they are traveling. Evil or Very Mad


Reason may be most of these low capacity vehicles are coming from India. India voted against us. So now after duty increase importing vehicles from India would be dropped heavily..

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics

kam2011 wrote:
WildBear wrote:
mono wrote:The IMF wants us to raise taxes across the board. This may be less 'discriminatory' but a lot more unfair for the majority of the people in this country.

Prices of the small vehicles with low engine capacity have increased dramatically when compared to Luxury vehicles and vehicles with higher engine capacity. This is just ridiculous and showed their weak management capability.Factors to consider,

1- Small vehicles are energy saving environment friendly vehicles(some small cars run 15-18 km per liter). They will save Foreign reserves in medium and long run due to fuel efficiency. This is in contrary to Luxury vehicles with fuel efficiency is more than 50 % less to small vehicles.
2-A luxury Vehicle, usually costs around 5 to 10 times a Small budget passenger vehicle, so if you really want to save the drainage of Foreign reserve, you should tax the Luxury vehicle significantly. Razz
3-If SL have a real green policy, Hybrid Vehicle tax should be lowered, but vice verse happened
4-Government tells public to switch off lights and stay dark to save energy and fuel. But many politicians use energy inefficient vehicles with high engine capacity and they need at least 5 such vehicles to move around them when they are traveling. Evil or Very Mad


Reason may be most of these low capacity vehicles are coming from India. India voted against us. So now after duty increase importing vehicles from India would be dropped heavily..


If that is the politics we are playing then we might see some Chinese benefit oriented move next?

Academic


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

kam2011 wrote:
WildBear wrote:
mono wrote:The IMF wants us to raise taxes across the board. This may be less 'discriminatory' but a lot more unfair for the majority of the people in this country.

Prices of the small vehicles with low engine capacity have increased dramatically when compared to Luxury vehicles and vehicles with higher engine capacity. This is just ridiculous and showed their weak management capability.Factors to consider,

1- Small vehicles are energy saving environment friendly vehicles(some small cars run 15-18 km per liter). They will save Foreign reserves in medium and long run due to fuel efficiency. This is in contrary to Luxury vehicles with fuel efficiency is more than 50 % less to small vehicles.
2-A luxury Vehicle, usually costs around 5 to 10 times a Small budget passenger vehicle, so if you really want to save the drainage of Foreign reserve, you should tax the Luxury vehicle significantly. Razz
3-If SL have a real green policy, Hybrid Vehicle tax should be lowered, but vice verse happened
4-Government tells public to switch off lights and stay dark to save energy and fuel. But many politicians use energy inefficient vehicles with high engine capacity and they need at least 5 such vehicles to move around them when they are traveling. Evil or Very Mad


Reason may be most of these low capacity vehicles are coming from India. India voted against us. So now after duty increase importing vehicles from India would be dropped heavily..

Valid point!


Policy decisions should not be emotional and drastic.

Rajaraam


Vice President - Equity Analytics
Vice President - Equity Analytics

slstock wrote:
kam2011 wrote:
WildBear wrote:
mono wrote:The IMF wants us to raise taxes across the board. This may be less 'discriminatory' but a lot more unfair for the majority of the people in this country.

Prices of the small vehicles with low engine capacity have increased dramatically when compared to Luxury vehicles and vehicles with higher engine capacity. This is just ridiculous and showed their weak management capability.Factors to consider,

1- Small vehicles are energy saving environment friendly vehicles(some small cars run 15-18 km per liter). They will save Foreign reserves in medium and long run due to fuel efficiency. This is in contrary to Luxury vehicles with fuel efficiency is more than 50 % less to small vehicles.
2-A luxury Vehicle, usually costs around 5 to 10 times a Small budget passenger vehicle, so if you really want to save the drainage of Foreign reserve, you should tax the Luxury vehicle significantly. Razz
3-If SL have a real green policy, Hybrid Vehicle tax should be lowered, but vice verse happened
4-Government tells public to switch off lights and stay dark to save energy and fuel. But many politicians use energy inefficient vehicles with high engine capacity and they need at least 5 such vehicles to move around them when they are traveling. Evil or Very Mad


Reason may be most of these low capacity vehicles are coming from India. India voted against us. So now after duty increase importing vehicles from India would be dropped heavily..


If that is the politics we are playing then we might see some Chinese benefit oriented move next?

Good idea.

mark

mark
Expert
Expert

yes........ Mad Mad

they will eat...eat....eat the country Evil or Very Mad

Roboticfx

Roboticfx
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

yeah,

country goes down down down to the hell. Evil or Very Mad

gamaya


Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics

The most basic method of doing anythingthing is trial and error. Seems like Sri Lankan politicians will do that 50 more years.

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