By Damith Wickremasekara
Private importers protest, seek review by Treasury
In a bid to curb a major tax fraud, the Customs Department is to decide on the value of brand new vehicles instead of accepting the declaration by the importer, Customs Director General Jagath Wijeweera said.The move comes after investigations revealed that vehicle importers, including leading companies, were undervaluing the vehicles to get a lower tax.
“Under the new scheme, the Customs has set up a Valuation Committee to determine the value of the vehicle and thereby impose the Valuation tax,” Mr. Wijeweera explained. He said that because of the former system, the country had lost millions of rupees in revenue.
A senior Customs official said the fraud had come to light after it was revealed that some of the vehicles imported for the state had been more expensive than the vehicles imported for the private sector. The new taxation system is expected to lead to a vehicle price increase between Rs. 400,000 and Rs 500,000, but in turn would raise the tax revenue to the Government.
The Government’s new move has been met with resistance from some of the main importers who have called on the Treasury to review the move.
Already some 100 luxury vehicles imported have been referred to the Treasury for a final decision after some of the importers declined to make the payments under the new scheme.
A spokesman for a car importing company said they had made representations to the Treasury to review the new valuation system.
He said some of the persons who had already imported vehicles, but were yet to clear them, were also affected.
