Opposition Leader Sajith Premadasa raised concerns in Parliament over ongoing irregularities in Sri Lanka’s vehicle import tax system, highlighting that the complex and opaque structure currently in place allows certain parties to evade taxes, depriving the government of significant revenue.
Speaking under Standing Order 27(2), Premadasa noted that both economists and the Samagi Jana Balawegaya (SJB) believe the current tax framework is designed in a way that enables loopholes, delaying the introduction of a simplified and transparent taxation method. He stressed that this delay not only reduces government income but also distorts fair market competition and places consumers at a disadvantage.
Premadasa questioned whether import taxes on electric vehicles are calculated based on maximum battery capacity or rated capacity. He requested that the specific criteria and tax slabs be presented, along with data on whether the imported BYD electric vehicles—particularly the ATTO 3 and other models—were taxed according to their actual or rated capacity. He further inquired whether investigations have begun to verify the actual battery capacity of these vehicles amid growing public concern.
Highlighting the scale of the issue, Premadasa claimed that improper tax application could result in the loss of LKR 4–4.5 million in revenue per vehicle. He asked for clarification on how many vehicles are currently being held at customs due to tax disputes and whether they will remain there until a resolution is reached.
The Opposition Leader also alleged reports that some parties are attempting to release detained vehicles by placing bank guarantees for the disputed tax amounts. He urged the government to recover any lost revenue if wrongdoing is proven.
Premadasa called on the government to learn from effective tax policies in developed countries, revise Sri Lanka’s vehicle import tax structure accordingly, and ensure the system is fair, transparent, and resistant to manipulation
