VAT (value added tax) on cars has
actually big belonging for automotive
industry across the Gulf States. They are
the center for the dealings of an excessive industry of automobiles, car
dealers will now have to pay this additional Vat in case anyway, with effect
from January 2018. Persistently, this year it is assumed already that
challenging year of used vehicle i.e. in 2016, was the year of overstocked
vehicle that’s why demand for new cars remain low. Due to the conditions,
implemented by VAT, the living life expense will be high while buyers will not
be that able to pay the VAT on car inversely, so in return, it will decrease the demand for cars in return, by showing
the economic behavior of price and
demand. Most of all, the market has
increased the number of the auto manufacturer in the industry so the competition has raised the price to the top
level, especially on luxuries SUVs and
Sedan.
Effects of VAT on Car Industry before Implementation
Implementation of VAT will influence
the car markets in both short and long terms. In the long term, there will be an
increase in car rates, as dealers will have to give VAT on car sales. In the
short term, buyers will try to buy cars before VAT to evade paying VAT on cars carrying
a marginal increase in the needs of vehicles.
What will people do?
So, the point is people cannot
afford to buy cars in a peak season of car prices due to VAT increments but
what if, this is also a peak season for wandering Dubai due to weather demands
and all? In case, they try to find an alternative solution to find a ride even time to be happy for their jaunt not to miss
them.
How to overcome the situation?
They better have options of
getting a rental car in Dubai, they can have the choice to get rid of VAT
values to be free either there is also an increment on car lease as well but
you will find a relaxation accordingly to enjoy your jaunt rather than pending
it on just because of the car you cannot afford due to an increase in their
value. There is also 5% increment of VAT values on monthly car rental provider’s
stock, so it is not as much bigger as it is on the cars you want to purchase.
So, get the one which suits your guts.
For more details, click here.........
0 comments:
Post a Comment