Apr 29, 2017

Company importing cars from Germany defraud Rs. 17 billion in duty Featured

A company importing high value cars from Germany had defrauded Rs. 17 billion due as customs duty, a former Customs head had complained to the  Bribery Commission.

The complaint was lodged by a person named Dayabaran and he had alleged that this fraud had been taking place over a period of time.

The importers had altered the actual value of the vehicle to a lesser amount, in order to pay a lesser customs duty. The cash difference had been settled to the manufacturer through Undiyal money transfer.

The reason these importers had reduced the value of the vehicle was because customs duty for luxury vehicles is over 300%. Hence a lesser value would enable them to pay a lesser duty.

A customs investigation was initiated, but according to the powers vested in the Customs Director General, the investigation had quickly been concluded two days prior to the complaint being lodged with the Bribery Commission.

However, Sri Lanka Mirror reliably learns that the said a check encashment of Rs. 200 million from their account was carried out two days prior to the conclusion of the investigation, raising suspicion.   

Through our investigations it was revealed that several vehicle importers were engaged in this fraudulent practice from the time of the Rajapaksa regime.

Meanwhile, a company importing a certain brand of vehicles from Italy, had imported these vehicles from England despite having the agency to import from the Parent company in Italy, which has also raised suspicion.