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Siyambalapitiya declares war on illegal vehicle importers

30 Oct 2022

  • Illegally-imported Hummer jeep bought by same importer at auction
  • Vehicle purchased at 8% below estimation set by Central Valuation
State Minister of Finance Ranjith Siyambalapitiya’s recent intervention in relation to the sale of a particular vehicle at the Sri Lanka Customs vehicle auction and the subsequent complaint made to the Criminal Investigation Department (CID) are part of a larger Government crackdown on an organised vehicle import scheme exploiting legal loopholes, it is learnt. Speaking to The Sunday Morning Business, Siyambalapitiya revealed that MP Vasudeva Nanayakkara had recently raised an issue in Parliament regarding the auction of several vehicles which had been illegally imported into the country at the Customs vehicle auction.  Upon investigating the matter in order to respond to Nanayakkara’s comment, the State Minister had unearthed that one of the vehicles, a Hummer jeep, had been purchased by the same person who had imported it illegally into the country. Furthermore, the vehicle had been purchased at 8% below the estimated value set by the Central Valuation Directorate of Customs. Elaborating further, Siyambalapitiya stated: “The report by the Director General of Sri Lanka Customs indicated that it was possible that this vehicle had been imported as part of an illegal practice that may have been taking place for some time. Furthermore, a previously compiled audit report has also pointed out that an organised racket of this type was being carried out by certain persons.  “It appears that this organised practice involves exploiting legal loopholes to avoid import taxes. When the country is facing an economic crisis of the present magnitude and the general public has been forced to bear a significant tax burden, it would be improper of me to stand aside and allow these practices to continue.” He stated that this involved dismantling luxury vehicles purchased abroad and importing merely the vehicle body, while the engine and other parts would be imported separately. In the aforementioned case, as per the information published by Sri Lanka Customs on 25 August 2022, a Hummer jeep without an engine had been auctioned. Ceylon Motor Traders’ Association Chairman Charaka Perera stated that he had previously heard of several other instances of such imports, similar to the State Minister’s allegations, through various news and social media channels. According to him, these illegal practices existed because the motor vehicle import industry was not properly regulated. He also pointed out that in addition to the loss of Government tax revenue, there was also a significant issue with regard to the quality of the vehicles once assembled. Therefore, he stated that the best method to prevent these illegal practices was to “regulate whoever is importing the vehicle and to hold that person accountable”.  He added: “Ideally, it should be a corporation and not an individual importing the vehicle – a corporation that adds value to the economy by creating employment and paying taxes properly.” – By Shenal Fernando       


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