With the imposition of income tax on new cars, unlicensed cars are selling well in the southern Shan State car market, it is learnt from local car dealers.
The number of dealers in unlicensed cars are increasing after the imposition of the income tax in the incumbent government’s tenure, and the licensed car market is on the decline, it is learnt.
The taxes levied on the cars is high and so, the licensed car market is not doing well. Dealers now prefer the trading of unlicensed cars because they cannot make much profit on licensed cars, said a local dealer.
The price of a 1300cc Honda Fit was around Ks9million, including taxes in the previous government’s period. The prevailing market price of this car is up to Ks12million. Therefore, there is little or no demand in the market, he added.
Unlicensed Honda Fit cars that flowed through Myawady can be had for only Ks600,000, including road user charges. These cars will be sold for about Ks1.3million, and car dealers can make a profit of Ks100,000 per car at a minimum, said a car dealer.
Car models such as the Honda Fit and the Toyota Vitz with 1300cc engines are popular in the Shan State unlicensed car market. The price of the cars ranges from Ks1.8 to Ks3.2million, depending on the model. A Toyota Mark II (IRS) sells for Ks2million to 3.5million, while a Toyota Crown (2004-2006 model) sells for Ks2milion to Ks5million. And a 2008 model Suzuki RVI 1800cc sells for Ks8.5million in the unlicensed market. These aforementioned cars are selling briskly.—Myitmakha News Agency