Minister of Labour and Deputy Minister of Economic Development Anil Jayantha addressed concerns surrounding a large consignment of BYD electric vehicles currently detained by Sri Lanka Customs over discrepancies in declared motor capacity.
Approximately 1,000 BYD vehicles, shipped in several consignments, were held after concerns had been raised that vehicles declared with a 100-kilowatt (kW) motor capacity may in fact be equipped with 150 kW motors. The motor capacity is a key factor in determining the applicable import duty rate in Sri Lanka.
Speaking during a televised interview, Jayantha said a group of used vehicle importers initially raised concerns about inconsistencies in documentation. “They pointed out that when importing used vehicles, their documents had to state the motor capacity as 150 kW, which incurs a higher tax. However, these brand new vehicles have been imported with documents declaring 100 kW,” he said.
Jayantha said that both sets of documents were presented to him and subsequently discussed with Customs officials.
When asked about allegations that vehicles with 150 kW capacity were imported using documents declaring only 100 kW—and that the motor output may have been limited to 100 kW via software—Jayantha said investigations are ongoing. He noted that the Sri Lankan Gazette mandates taxes to be calculated based on the vehicle’s motor capacity, not its output.
“There are now questions as to whether the documents were forged to show a downgrade, or if software was used to reduce output,” he said. “Whatever the case, Customs will carry out a verification process to determine the actual motor capacity.”
Responding to concerns about customers who have already placed orders for the detained vehicles, Jayantha said that in some cases, it may be possible to recover funds through bank guarantees if fault is established. However, he noted uncertainty about whether the importing company would be willing to provide such guarantees on behalf of end users.
Regarding potential tax evasion involving previously released vehicles imported under similar conditions, Jayantha said Customs has provisions to audit past imports. He added that any penalties or unpaid taxes should be the responsibility of the importer, not the consumer. (Newswire)
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