Raising concerns in Parliament regarding the tax complications arising during vehicle imports, Opposition Leader Sajith Premadasa said that the tax structure is overly complex, designed to fulfill the interests of various parties, which has led to ongoing evasion of import taxes.
He said both economic experts and the Samagi Jana Balawegaya (SJB) share the view that the absence of a simple and transparent tax system for vehicle imports is causing significant loss of government revenue, creating an imbalanced market competition, and placing undue hardship on consumers.
MP Premadasa made these remarks under Standing Order 27(2), addressing the crisis surrounding vehicle importation.
Emphasizing the need to clarify whether taxes on imported electric vehicles are calculated based on their maximum capacity or their classified capacity, he requested that the criteria and limits used to impose these taxes be presented separately.
Furthermore, he asked for details on the capacity basis used by companies importing used or new BYD electric vehicles when paying taxes during customs clearance.
He called for the submission of both the maximum and classified capacities of BYD models like the ATT3 and others imported by the local BYD representative in Sri Lanka. Given the current controversy, he inquired whether investigations have begun to determine the actual capacities of these electric vehicles.
MP Premadasa pointed out that due to the lack of proper policy implementation, the government could lose Rs. 4 to 4.5 million in tax revenue per vehicle. He also sought information on how many vehicles are currently held at customs due to tax-related complications, and whether these vehicles will remain there until a solution is found or if the government has taken any steps to resolve the issue.
He also pointed out that reports suggest attempts are being made to release the detained vehicles by placing bank guarantees equivalent to the tax difference. If any wrongdoing has occurred, he stressed that the lost tax revenue must be recovered.
Urging the government to learn from this issue and revise its vehicle import tax policies, MP Premadasa noted that developed countries have formulas that do not harm their economies, and Sri Lanka should learn from those models and act accordingly. (Newswire)
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