By: Staff Writer
July 27, Colombo (LNW): Sri Lanka’s push toward a greener transport future has hit a roadblock with serious concerns raised over tax discrepancies in the importation of New Energy Vehicles (NEVs), particularly models from global EV giant BYD. Allegations of irregularities have sparked debate in Parliament and drawn concern from industry stakeholders.
Samagi Jana Balawegaya (SJB) MP Mujibur Rahuman has accused authorities of facilitating a potential tax evasion scheme involving the importation of BYD vehicles. Speaking in Parliament, he cited a stark difference in taxation between brand-new and used models of the BYD ATTO 3.
According to Rahuman, a brand-new ATTO 3 vehicle, declared with a 100 kW battery, was taxed Rs. 5.5 million. In contrast, a used ATTO 3 model, allegedly registered as 150 kW, was taxed at Rs. 10 million. “The used vehicle is being registered with a higher kilowatt capacity than the new one, leading to a Rs. 4.5 million tax discrepancy,” he claimed. The implication, he warned, is the possible under-declaration of vehicle specifications for tax avoidance.
The allegations have prompted multiple vehicle importer associations and car trader groups to urge the Ministry of Finance to investigate the issue immediately. They warn that such discrepancies not only undermine fair competition but also risk significant losses in government tax revenue.
The controversy comes just months after Sri Lanka lifted its long-standing vehicle import ban in January 2025. The move allowed BYD — the world’s leading NEV brand — to officially enter the Sri Lankan market. The first shipment of BYD vehicles, including the SEALION 6, ATTO 3, and DOLPHIN models, arrived on March 14. These imports were hailed as a milestone in the country’s transition to sustainable mobility.
BYD’s entry was expected to significantly boost Sri Lanka’s NEV landscape, with the importing firm aiming to create a model for green transport adoption in the region. The initial delivery marked the culmination of years of groundwork and regulatory advocacy, paving the way for advanced, environmentally friendly transport solutions for Sri Lankan consumers.
Industry observers note that the BYD launch was meant to be a cornerstone of Sri Lanka’s NEV strategy, providing access to cutting-edge electric vehicle technology. However, the recent tax discrepancy allegations could tarnish that progress unless addressed promptly.
With further shipments of BYD models expected in the coming months, stakeholders now look to authorities to ensure transparency and proper enforcement of customs regulations. Resolving these concerns is seen as vital not only for public trust but also for maintaining momentum in the nation’s green mobility ambitions.
