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Tax on Motor vehicles also hiked

2012-03-31 06:50:17
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Tax on Motor vehicles which include cars, vans, trishaws and motor bicycles have been increased with immediate effect. The Ministry of Finance and Planning announced today that the increase was made to ensure a drop in the vehicles imported to the country in order to reduce the high traffic congestions prevalent. The Ministry also said that this move will help bring down the use of fuel by motorists.

The classifications of the Tax have been made to correspond with the engine capacity of the vehicles. Hybrid vehicle production taxes below 1000CC have been increased by 14 % with tax for all hybrids above 3000CC being increased by 57%.

Production duties for cars and vans have been classified into the fuel type used together with the engine capacity. The tax for cars that use Petrol under 1000CC have been increased by 85% with cars having an engine capacity of over 3000CC being increased by 129%. The category between 1000 CC to 2000 CC have also been increased by 85%.

Production duties on Diesel cars have been increased from upto 114% to 173% to correspond with the engine capacity.

Import duty on vehicle spare parts have also been increased to correspond the highest value on either Specific Duty or Advolarum Duty disbanding the previous method of taxation on spare parts.

However there has been no change in the tax imposed on tractors, busses and Lorries. (Hafeel Farisz)


  Comments - 111

  • Tharaka Chanaka Saturday, 31 March 2012 08:12

    Very soon a Maruti will be expensiver than a TATA bus

    Reply : 5       345

    lankan Saturday, 31 March 2012 08:40

    lets by a TATA bus and drive to work... can earn a buck as well by picking up some people on the way.....

    Reply : 7       265

    citizen1 Monday, 2 April 2012 02:48

    nice idea.

    1       16

    Channa Saturday, 31 March 2012 13:32

    Walk to office, school & market. A good exercise. Less expenditure on medical bills.

    Reply : 26       50

    Bigfoot Sunday, 1 April 2012 13:44

    "Thirickalas" for the ministers.

    5       23

    Chiran Tharaka Monday, 2 April 2012 08:03

    How ever the bullock cart price will also increase near future..

    Reply : 0       4

    ase Saturday, 31 March 2012 08:29

    here we go

    Reply : 11       100

    lankan Saturday, 31 March 2012 08:37

    what about those inbetween 1000 cc and 3000 cc

    Reply : 12       70

    prakash Saturday, 31 March 2012 09:01

    I think no change, it’s unfair

    Reply : 13       56

    lankan Saturday, 31 March 2012 09:31

    how unfair... the normal sri lankan could only get a maruti with their income now thats also not possible....

    1       26

    Ranil Saturday, 31 March 2012 10:05

    Read the text men, if can't understand ask soemone to explain without nocing.

    7       55

    lame Sunday, 1 April 2012 06:47

    In a move that will impact Indian auto exporters to the island nation, Sri Lanka today raised tariffs on vehicle imports to curb high import expenditure and the fuel bill.

    The new tax will affect Indian brands of motor vehicles which dominate the island.

    As a result of the hike, a 1000 cc car would attract a total tax payment at the point of import at 200 per cent, as opposed to 120 per cent earlier.

    Petrol-powered three-wheelers, a market dominated by India's Bajaj Auto here would now be paying a total tax of 100 per cent of the value against the previous 51 per cent.

    Reply : 1       12

    A.P.wimalagunasekara Monday, 2 April 2012 17:22

    That's good,It's to teach a good lesson to India

    3       3

    Madura Sunday, 1 April 2012 09:59

    The category between 1000 CC to 2000 CC have also been increased by 85%.

    Reply : 2       8

    Lankan Saturday, 31 March 2012 08:55

    Why This Kola Veri..!!!,,/////

    Reply : 11       91

    Nodrog Saturday, 31 March 2012 09:01

    Too many cars on the roads because Govt gives duty-free permits to every Ton Dick and Harry. Some who don't even have the money to import a car so they sell the permit

    Reply : 5       37

    saranga Saturday, 31 March 2012 09:11

    This is not owing to any of these issues,, Sri has seen a dramatic change in car imports and it had helped to ballooned the trade-deficit( Rs1000 billion or Rs 100,000 million, congestion and also driven up the fuel bill by 34% percent.

    Reply : 3       13

    Prasad Saturday, 31 March 2012 09:34

    Ha ha ! Targeting Maruti ?

    Reply : 9       67

    SUN A Saturday, 31 March 2012 09:36

    No tax hike for politicians as they have total tax free permits. Why not stop issueing those?

    Reply : 6       163

    Fair N Square Saturday, 31 March 2012 17:17

    well said you just took words off my mouth... Politicos get duty frree permits andwho pays for their fule usage. All vehicles they use are gas guzzlers= Heavy petrol consution. They need to rid the practice of duty free permit... Why have 2 sets of rules, 1 for politicos, State Employees and another for the hard working bone sucking citizens?

    Reply : 1       33

    Shai Sunday, 1 April 2012 10:27

    Govment has good vision or not, they have good reasons. insted of ministry or economics and planing, we can change it, ministry,of economics and mafia, Since they dont have any plain.

    Reply : 3       6

    Fterm Saturday, 31 March 2012 09:43

    Is this also because we lost the UN vote ??

    Reply : 9       71

    Mervin Saturday, 31 March 2012 09:44

    Hooo!!!!come on mahinda!!!!ur the best!!!!!!

    Reply : 9       77

    Des Saturday, 31 March 2012 09:46

    First they say tax was increased to reduce use of fuel. Then they increase taxes on hybrid vehciles. Funny isnt it. If you want to save fuel shouldnt you encourage more hybrids.

    Reply : 7       139

    Prem Saturday, 31 March 2012 09:57

    Is that the real reason to the increment of tax?

    Reply : 7       44

    RajasH Saturday, 31 March 2012 10:00

    build express ways all over the country and then say there are too many cars
    contradictions contradictions

    Reply : 8       74

    Labby Saturday, 31 March 2012 10:08

    What do they care as long as they have free transport..

    Reply : 5       66

    Kangaroo 2 Saturday, 31 March 2012 10:33

    Thank you so much

    Reply : 1       11

    Ruwani Saturday, 31 March 2012 10:45

    The Mirical way..!if aney car has four veel ,then price go high over 60%. slowly ppl must buy a three viel car: Futhre more tax will chrage for the Cars's colur.!

    Reply : 2       13

    kuma Saturday, 31 March 2012 10:53

    My Car, My petrol and only I benefit.

    Leave the citizens open to HENA. (Thundering)

    You can imagine one day Hena goes to who''''''''''''''''''''''''''''

    Reply : 0       13

    Shane Saturday, 31 March 2012 11:07

    for some of the corrupted people this is the way to earn money....

    Reply : 0       8

    koko-jumbo Saturday, 31 March 2012 11:20

    bullshit - during election campaign many government MPs including MR was boasting that during their governance they have made possible even to the poor to afford a vehicle through the introduction of many finance companies.AND now they say that this taxation will bring down the vehicle numbers - Sri Lankans too have to follow the footsteps of TUNISIA. Please don't depend of RW

    Reply : 3       12

    Kandy Saturday, 31 March 2012 12:07

    Script from movie - 300% SpaTAX
    People: This is madness!
    MARA: Madness?
    MARA: ....THIS.....IS....MARAaaaaa... (MaRa screaming)

    Reply : 2       10

    Fusion Saturday, 31 March 2012 12:29

    But I guess as usual this won't apply to our Politicians.

    Reply : 0       20

    Sandun Saturday, 31 March 2012 13:23

    What is the use of highways then, I think only to use by politicians.

    Reply : 0       14

    Dr.M.Ganeshamoorthy Saturday, 31 March 2012 13:52

    Free fuel
    100 percent duty free vehicle
    free electricity
    free food
    free house.......
    can anyone tell exactly on which the politicians pay for ???

    Reply : 0       64

    Spartan Monday, 2 April 2012 05:52

    Super Point Sir!

    Reply : 0       3

    Kapila Saturday, 31 March 2012 13:58

    Guys My vehicle was about to publish in the paper for 1.6 Mil and now what price i should sell it 1.6 *85 % = 2.96 Mil ?? Since it's a second hand I ll sell it at 2.5 Mil- 2.6 Mil ? what ure suggestion???

    Reply : 2       11

    saman Sunday, 1 April 2012 11:32

    It all depend what you want to buy after selling it ! if you want to buy a bullock cart yes go ahead with 2.5 !

    Reply : 1       18

    Dutugamunu 1 Saturday, 31 March 2012 14:17

    If they want to curtail imports to save fuel consumption why do they increase tax of hybrid cars.I agree with Des .If you want to develop this country You must have very sound economic policy .Unfortunately our short term targets are politically geared and country will not be benefited from that.We must have a good leader who has a vision to develop this country.

    Reply : 0       20

    Bigfoot Saturday, 31 March 2012 14:40

    Soon the pole tax?

    Reply : 0       7

    zion Saturday, 31 March 2012 14:57

    wow... owning a vehicle is no more a luxury item. Middle class people are the poor ones getting buried with increase in taxes and high cost of living. MR and the team please look into these serious issues and not petty stuff..

    Reply : 1       8

    Struggle Saturday, 31 March 2012 15:00

    miracle of asia. cutting legs to fit shoes

    Reply : 1       14

    unpman Saturday, 31 March 2012 15:06

    poor guys. is this mentioned in the budget ?????. this government poolishing public as donkies......

    Reply : 1       10

    Travis Saturday, 31 March 2012 15:37

    "Increase was made to ensure a drop in the vehicles imported to the country in order to reduce the high traffic congestions prevalent" - This reminds me of famous sinhala saying "Atheesareta amuda gahanawa wagei"

    Reply : 1       16

    silva Saturday, 31 March 2012 15:40

    why they increase hybridge if they say due to fuel usage? carry on as like

    Reply : 0       10

    Fazli Saturday, 31 March 2012 16:05

    This is to 'reduce high traffic congestion'. But then why did we built super highways ? Mismatch !

    Reply : 2       5

    Lihana arachchi Monday, 2 April 2012 07:39

    concrete roads.

    Reply : 0       1

    Kabir Hassan Saturday, 31 March 2012 16:45

    Crab dancing in the cool water. It don't take much time to boil. Let see----------

    Reply : 2       9

    joker Saturday, 31 March 2012 16:51

    Is this a pre April Fools joke??????????????????

    Reply : 0       18

    Lucksman Saturday, 31 March 2012 17:17

    This is not a very good move, as no country can progress without vehicles. Since the dollar has hiked they should reduce the duty and taxes to absorb the price hike as the cost of living has become the no1 issue today.
    The government should encourage and employ marketing specialist to promote Sri Lankan goods and Tourisum.

    Reply : 2       6

    hybrid Saturday, 31 March 2012 17:31

    "To ensure a drop in the vehicles imported to the country in order to reduce the high traffic congestions prevalent. The Ministry also said that this move will help bring down the use of fuel"

    I think this above comment is a ride for all educated and uneducated people in Sri Lanka.

    If a person need to buy a vehical, he or she will buy the vehical at any cost.

    Still the vehical count will go high.

    Reply : 0       7

    PETER Saturday, 31 March 2012 17:37

    I am not sure how long these culprits can cheat pulic & loot public income

    Reply : 1       20

    kumar Saturday, 31 March 2012 17:45

    an year ago they suddenly reduced tax by 50%.. someone told me that it is to help clear vehicles of certain people which is stuck in the port.. I didnt beleive it then!!!

    Reply : 1       15

    Chandra Saturday, 31 March 2012 18:11

    Ive my Aston Martin. No worries.

    Reply : 2       17

    hisham Rafi Saturday, 31 March 2012 18:25

    The Reason is simple, GOSL need to put a cap to the trade deficit. lets face it we are not china or india. we depend on import. the negative trade deficit means weak rupees. but what irks me most is the balant lies to cover this up. traffic jams come on.

    Reply : 3       11

    Osanda Saturday, 31 March 2012 18:33

    Now the old vehicals will be very expensive and those old once consume more fuel than the new vehicles which are fuel efficient.idiots make polices in Banana state.it would be better to reduce the tax on brand new cars and have government control Road worthy test annually for the vehicles and issue a certificate. which would be save for the people, generate income for the Government and protect the environment.

    Reply : 3       20

    purasa Saturday, 31 March 2012 20:14

    I think it is good that if tax increase goes 100% to 3 wheels because they increase traffic congestion in the country.. In fact , 3 wheel hire is a money making profession but on the other hand it increases traffic congesion and crimes. therefore, may our president make attention to create a good transportation service in the country such as electric trains ,tramcars and skyways.

    Reply : 1       14

    dev Saturday, 31 March 2012 20:18

    wow, what a miracle of Asia. Keep it up sir. what about Air TAX?

    Reply : 0       17

    purasa Saturday, 31 March 2012 20:38

    thumbs up mahinda,,, ha ha

    Reply : 0       8

    mike Saturday, 31 March 2012 22:19

    There will be more tractors on the road, iMPORT GO CARTS AND PROCARTS?

    Reply : 2       12

    Rohitha Saturday, 31 March 2012 22:36

    Just a Comparison to put our taxes in perspective.
    Car model: Toyota Camry 2.4Lt (considered an ordinary family car)

    (In Rupees converted from base currency)
    United States: Rs. 3,100,000
    Australia: Rs. 3,250,000
    Japan: Rs. 3,250,000
    Malaysia: Rs. 6,500,000
    SRI LANKA: Rs. 15,000,000 (Yes, Fifteen Million)

    Reply : 2       43

    MNS Monday, 2 April 2012 06:54

    Better migrate to own a family car

    Reply : 0       6

    bimba Sunday, 1 April 2012 00:08

    Good public transportation is one of the best solution to reduce fuel importing cost. Without doing enough to have a good public transportation in the country no use of increasing tax. Ultimately these tax will be utilized by politicians and henchmen for their benifits.

    Reply : 0       15

    RIF Sunday, 1 April 2012 01:18

    Govt do not have any other Income ,in one week, they will increase the fuel and say to reduce environmental pollutant,

    Reply : 0       8

    bandulaster Sunday, 1 April 2012 01:59

    Looks like the Govt is so tight for Dollars. Minister Weerawnsa will be able to give the treasury few dollar notes he had saved by his boycott propaganda today as today (1st of April) is the Birthday of the Minister.

    Reply : 0       17

    Andy Sunday, 1 April 2012 02:19

    Sad times for SriLankans! Hope the good days are ahead! If the govt believes that citizens should be punished for driving cars, then the politicians should not drive tax payers cars!

    These losers come from remote part of the country, then look to be driven in luxury cars that cost millions!

    It's time people woke up!

    Reply : 0       15

    jeew Sunday, 1 April 2012 03:31

    high traffic congestions prevalent - This is very very funny ....i don't understand the concept behind this .....we are not fools

    Reply : 1       7

    MIgara Sunday, 1 April 2012 04:20

    "They" think every one else other than them live in this country are ideots ..the truth is otherway around..

    Reply : 0       9

    AHAMED JUNAID Sunday, 1 April 2012 04:48

    Is that the real reason???????

    Reply : 4       7

    sena Sunday, 1 April 2012 04:54

    this is too late. house maid dollars spent on cars by politicians and officials with no contribution to economy

    Reply : 1       12

    bah Sunday, 1 April 2012 05:24

    It is just a traffic plan for 21st century. Let us keep the road clean without vehicle and ride donkeys and cattle cart once again. Ha ha what a M.Chintana

    Reply : 3       6

    Samayan Sunday, 1 April 2012 05:34

    electricity bill jacked up by 60%,water bill by 50% bus fare by 40% vehicle tax by 130% fuel by 30% essential food items by 30% gas 30% and wait!..... another increases come soon for New year..

    Reply : 0       11

    achtung Sunday, 1 April 2012 05:39

    I gave up my dream of buying a car , and bought the entire Need For Speed collection DVD set. That's the only way to drive a car now.

    Reply : 1       41

    Sena Sunday, 1 April 2012 07:33

    All the benifit use by the politicians
    Middle class people cannot buy even motor bicycles.

    Reply : 1       10

    Mervyhn Szilva Sunday, 1 April 2012 08:27

    already Sri Lanka has one of the highest vehicle prices in the world.

    In Other countries you could by a brand new Ford Expedition for the price you pay for a 3 year old used corolla here.

    Reply : 0       10

    Trehan Munasinghe Sunday, 1 April 2012 08:33

    A very unnecessary move by the SL Govt, its not practical to divert the attention of their (Govt) failure to cut down on waste and mismanagement of the countries economy... As Sri Lankan's its our right to own a vehicle (within their means) doesn't mean all should use a private car everyday, we can reduce fuel consumption by restoring a sound and proper local transport system. Look at Australia / Singapore for example. City mini buses are a good choice also. (And not private please but state owned)

    Reply : 0       11

    chat Sunday, 1 April 2012 10:28

    Very good comment. But do not use Australia as an example for having a good public transport system. Because it does not. And where it exist it cost so much.

    Reply : 1       5

    Mohammed Sunday, 1 April 2012 09:53

    This is the time all Lankan get to gether to change the Goverment

    Reply : 0       9

    milhan Sunday, 1 April 2012 09:59

    all this due to mismanagement of economy..srilanka remains most expencive for vehicles...in africa you can buy a car. 3times less than in srilanka...eg in sri lanka $45000 same car in kenya..tanzania.bostwana..almost all african contry arond $15000..some contries even more corrupted than in srlanka.....dont blame the politicians..its we who elect them ..we. should blame ourselves..for bertter economy car prices must come down..no bodys buying a car for cash except for few...99% on finance..bad for srilanka.....

    Reply : 0       7

    Mad Cow 675 Sunday, 1 April 2012 10:29

    The country is over-extended in its debts and this increase in taxes and price hikes on alcohol and cigarettes are knee-jerk reactions to try to fix the problem. I do not have a degree in economics, but I do know the situation all around is getting desperate to the point that an eruption is forming.

    Reply : 0       7

    dhammika Sunday, 1 April 2012 12:59

    POLITICOS lata JOLLY
    PEOPLE to pay with POLIE.....

    Reply : 0       7

    KIT Sunday, 1 April 2012 13:05

    Well, gov. officials enjoys public money for permits.... private sector professionals pay very high tax every month, runs on roads that are unusable and still have to pay 2 to 3 times the cost of vehicle. This is unethical and non democratic. We will see more brain drain in the country... sad place to be.

    Reply : 0       9

    Genewa Sunday, 1 April 2012 14:04

    Solution to increased vehicles on the road is constructing more roads, widening existing roads, arranging good train services.All this is due to unplanned ruling short sighted.

    Reply : 0       4

    uaa Monday, 2 April 2012 06:47

    Yes, agree100%. More investment in infrastructure development is the way forward. Increasing taxes and all that are treating the symptoms, not the causes of economic chaos. What we need is the right selection of infrastructure investments, not white elephants without any long- or short-term returns.

    At the end, Have's will drive any way, and have not’s will ??. have to walk, I guess.

    Reply : 0       0

    na Sunday, 1 April 2012 14:35

    well, this is something that should have happend 2 years back, this problem even a school child would have predicted, now see what has happend big oil bill, pollution more than anything else waste of time on the road which means sri lanka is becoming less productive, we go to office in the morning with lot of stress and wonder the whole day, policy makers please open your eyes

    Reply : 0       4

    alex Sunday, 1 April 2012 15:05

    We want more !!!!!!!!!!!!!!!!!!

    Reply : 0       12

    sam Monday, 2 April 2012 01:56

    good thing the politics can't earn much

    Reply : 0       2

    Antony Monday, 2 April 2012 02:11

    we are flying on ashchairimath lankawak - only on prizes
    what will happen
    tonto

    Reply : 0       1

    karu Monday, 2 April 2012 02:33

    Well, a vehicle manufacturer has a production unit, R&D section,
    sales, administrative exp, advertising exp etc.etc.etc. With all these they give us a vehicle for a reasonable price. Our Govt.policy makers seated in a air con room charge exorbitant duty to run the affairs. They all enjoy duty free vehicles.
    Good show

    Reply : 0       2

    frank hilary Monday, 2 April 2012 02:41

    Is it a move to meet IMF requirements ?

    Reply : 0       6

    SANJU Monday, 2 April 2012 02:50

    may thunder strike upon there heads

    Reply : 1       11

    shantha madawelaa Monday, 2 April 2012 03:50

    some thing is better than nothing....

    Reply : 2       0

    Tropical Monday, 2 April 2012 04:02

    Well they want us to live with Rs 2500 a month..So vehicles will be a luxury which a lot of people wont be able to afford in the future..the fuel prices should go up very soon to Rs 200 a liter..where is this gonna end???

    Reply : 0       2

    samie Monday, 2 April 2012 05:00

    what is decrease in this country...Everyday public hear only INCREASE INCREASE.....DONT KNOW WHAT THIS GOVERNMENT IS GOING TO DO THIS PUBLIC....COUNTRY IS ALREADY UNDER FAMINE AND PEOPLE FIND IT DIFFICULT TO LIVE WITH IT WILL MR OR RANIL WILL SPEAK ABOUT THIS NO... NEVER...ALL WANT TO FILL THEIR POCKETS...& NOT TO WORRY ABOUT THE PUBLIC

    Reply : 0       0

    Comedy Central Monday, 2 April 2012 05:13

    With 7,500 we now can't by a vehicle - Ayyo !

    Reply : 0       2

    chanda Monday, 2 April 2012 05:49

    We might be able to buy a maruti for Bandula's 7500/- ...not now but in 10 years time!

    Reply : 0       3

    GooooD Monday, 2 April 2012 06:11

    All The Best............. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    Reply : 0       0

    Sumedha Monday, 2 April 2012 06:34

    Instead of building all those highways we should have spent it on increasing capacity on our existing road system. We could have saved a lot of money as well as really given a boost to our economy. Anyway, a highway is never a total waste of money, but we need to use our resources wisely to give our economy the maximum possible benefit. Let's see a 10,000 per capital country by 2020. WE CAN DO IT!

    Reply : 0       2

    FARIQ Monday, 2 April 2012 07:08

    so better ask government to rehabilitate the boat system or canal system there for there will not be much traffic on road.

    Reply : 0       3

    Sri Lanakn Monday, 2 April 2012 07:40

    OMG! Just brought a car.. one week back....

    Reply : 1       2

    sizzler Monday, 2 April 2012 07:44

    Govt reduced the taxes before the Ministers to purchase luxury vehicles. Now they have increased the taxes to put a stop to importation.

    Reply : 0       1

    lovesri Monday, 2 April 2012 08:15

    Why bother. More tax means better development. This will motivate people to produce cars locally

    Reply : 4       0

    valentine Monday, 2 April 2012 08:50

    Jayaweva.

    Reply : 2       0

    Rohitha Monday, 2 April 2012 09:59

    Malaysia too slaps high taxes on foreign cars. But their local cars are very cheap and affordable. Petrol prices too are dirt cheap. A Perodua VIVA is only RM 24,000 (Rs. 950,000) which is very affordable to the average Malaysian.

    Reply : 2       2

    SL Commentor Monday, 2 April 2012 15:12

    SL Govnt. is always proud to it nation but not to its ppl......

    should apply some common sense before making such decisions.....

    Reply : 0       2

    James Anderson Wednesday, 4 April 2012 07:49

    All politicians, professionals ( like doctors ) having duty free facility and more over those
    politicians already stocked their vehicles when duty was low. countries main income
    contributors are foreign expatriates and they don't hv any concession for vehicle
    own ship. just think every expact stop sending their money to Sri Lanka..!! government
    must think about this and should initiate scheme to buy vehicles cheeply..

    Reply : 0       1

    Lakshaman Thursday, 5 April 2012 06:16

    Government friendly Vehicle Sale owners imported huge amount of vehicles and got filled their vehicle yards before March 2012. Now they are selling them to higher prices and can have huge profits and can treat their friendly politicians who helped them to do dirty business without much effort. Always politicians try to earn money from easy methods.

    Reply : 0       0

    Lakshaman Thursday, 5 April 2012 06:36

    We do not need this type of government and we look after these things in next election. Furthermore we don't have trust regarding the Election methods. A method should be implemented to facilitate voters to cross check the election results and to get verify the vote of the voter, his parents, relations or friends is included in the results. Then he can realize fault votes like death people, people who working in other countries during the election period, etc.

    Reply : 0       0

    Lakshaman Thursday, 5 April 2012 06:36

    Politicians have permits to buy vehicles. They can't satisfy only from that privilege. They want to stop general public from buying vehicles to maintain their status. And they want to grab tax money from innocent people to recover their failures of poor finance management of the country. Actually we don't need this type of government which is highly depending on tax only.

    Reply : 0       1

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