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COPA sub-committee to investigate vehicle registration irregularities

02 Mar 2021

  • Lack of co-ordination between Customs and DMT causing revenue loss

  Committee on Public Accounts (COPA) Chairman Prof. Tissa Vitarana has taken steps to appoint a special sub-committee to investigate the loss of revenue to the Government through the registration of vehicles imported for special purposes as dual-purpose vehicles. This took place at the COPA meeting held in Parliament recently. This meeting was convened to review the Auditor General's Reports for 2017-2018, and the current performance of Customs. Accordingly, State Minister Lasantha Alagiyawanna was appointed as Sub-Committee Chairman, while State Ministers Sudarshani Fernandopulle and Duminda Dissanayake, and MPs Ashok Abeysinghe, Dr. Harini Amarasuriya, and Weerasumana Weerasinghe were appointed as the other members. The committee drew attention to the use of the Special Purpose Vehicle Identification Codes (HS Code) by Sri Lanka Customs, and the legal changes that can be seen in the identification of vehicles for special purposes by the Department of Motor Traffic. The committee emphasised that due to the Department of Motor Traffic’s (DMT) non-compliance with the HS Code issued by Sri Lanka Customs when registering vehicles, the Government would lose a large amount of revenue, as these vehicles are being registered under another form. COPA also focused on the recommendation made by the committee appointed to resolve this issue at its meeting held on 20 September 2019, to obtain a certificate from the Department of Import and Export Control when importing such vehicles. The importance of enacting this committee report into law and the importance of amending the relevant laws for Sri Lanka Customs and the DMT to implement the committee’s recommendations were also discussed at this meeting. The COPA Chairman inquired as to why the HS Code introduced by Sri Lanka Customs for imported vehicles is not used in the same way for the registration of the relevant vehicle by the Department of Motor Traffic.  The COPA Committee also noted the lack of a computerised comparison system between the Sri Lanka Customs and the DMT. The Committee emphasised that the Ministry of Finance, Sri Lanka Customs, and the DMT should work together to expedite the installation of this system to avoid further irregularities. The COPA also drew attention to the use of fingerprint machines by Sri Lanka Customs officers to enter and exit the service. Customs officials pointed out that there are certain sections in Customs where such a machine could not be practically implemented, to which the COPA directed that these sections be sent to the Committee separately.

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