Govt. loses Rs.3 Bn custom duty from import of 3,000 Toyota Hilux Smart Cabs: COPA

It was revealed that the Government had incurred a loss of Rs. 1 million each for the import of 3,000 vehicles.

This was revealed in the first report of the Committee on Public Accounts for the first session of the 9th Parliament which was presented by COPA chairman Prof.tissa Vitharana on July 20 in Parliament.

The Committee has observed that a large amount of tax income is lost to the government due to the tax irregularities occurring in the importation of vehicles by the Customs and the registration of these vehicles with the Department of Motor Traffic.

According to the report, vehicles imported by the Customs for special purposes at a lower tax rate are registered with the Department of Motor Traffic as dual-purpose vehicles.

In addition, during the period 2010-2019, 44 vans were imported as special purpose vans with a lower tax rate and subsequently registered with the Department of Motor Traffic as dual-purpose vehicles for the purpose of transporting passengers and goods and due to this process government had lost at least 1300 million rupees in taxes.

The report further observes that the government has lost Rs. 56 million in taxes due to Toyota Land Cruisers not being properly cleared by the Customs under the passenger transport category. It has been revealed that the Toyota Land Cruiser luxury vehicle imported by fixing public address system and charging only a duty of Rs.1.5 million under the special purpose vehicle had been cleared under the category of transport of passengers where a duty of approximately Rs.56 million should have been charged.

The committee has also observed that in order to avert the irregularities occurring, in the importation of special purpose vehicles the vehicles cleared under Harmonised System Code (HS code) no 8705 by the Customs should be registered with the Department of Motor Traffic under a special number (PZA) .