Details of a vehicle racket involving “Specialized vehicle” imports taking advantage of lower tax regime of engine capacity taxation formula have been revealed
Parliamentary Committee on Public Accounts (COPA) has detected this racket where certain vehicle importers have brought down “Specialized vehicles” paying lower taxes when clearing it from the port and later registered at Motor Traffic Department
A t he recent hearing of COPA meeting it has been revealed these “Specialized vehicles” were being modified and registered as higher value vehicles and sold at high prices.
This has caused a loss of Rs 243 million in taxes to the government and the vehicle modification racket has been carried out since 2010, the Auditor General’s report revealed.
The Committee Chaired by MP Lasantha Algiyawanna directed the Secretary to the Ministry of Finance to inquire and report to Parliament on this matter by October 9.
A total of 414“Specialized vehicles” had been imported during 2010 and 2014 period and after modifications it had been registered as luxury vehicles of a higher value.
Customs officials who appeared before the Committee revealed that in 2018 a total of 112 specialized vehicles had been imported and 92 had been imported by the same importer
(LI)