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Tuesday, 2 February 2016 00:29 - - {{hitsCtrl.values.hits}}
By Charumini de Silva
Finance Minister Ravi Karunanayake yesterday categorically denied allegations made by the JVP leader Anura Kumara Dissanayake of favouritism regarding vehicle import duties, and the Sri Lanka Customs revealed that it has recovered the relevant dues, at a media briefing held at the Finance Ministry in Colombo yesterday.
Karunanayake said the JVP leader accused him of interfering in the investigations of vehicle fraud and having helped ‘selected’ vehicle importing businessmen to release undervalued jeeps (Prado’s) from the Sri Lanka Customs.
Finance Minister Karunanayake charged that the JVP leader made this statement in Parliament while safeguarded by virtue of 
Parliamentary privileges and since then he had been quite silent about it.
However the Minister asserted that in the future if he makes such a statement he would take legal action against him.
Sri Lanka Customs Director General Chulananda Perera giving a lengthy explanation of the investigation said that Finance Ministry, Sri Lanka Customs and the Vehicle Importing Associations had come to a decision to release the 189 Prado jeeps having considered all factors.
“We created a proper system to generate revenue for the Government in a very fair manner. With the new valuation system the Valuation Committee has decided to impose a custom duty of Rs.1.6 million and generate additional income of Rs.320 million for the Government in a very transparent and sustainable manner,” he pointed out.
Perera denied allegations made by parties who claimed that the Government could have generated a higher income by imposing a fine on invoices that have undervalued vehicle prices.
“If we imposed a fine of Rs.3.2 million (which is double the tax amount), 50% of that income goes to the officers who conducted the investigations, 30% to the Government and 20% to the Customs Department. Thereby, imposing a fine would not generate a higher income to the Government,” he explained.
He said although it had been reported that investigations were carried out on 710 vehicles the actual number in question was 189.
He said all of those jeeps were imported under permits and on an average (depending on the exchange rate) the total custom duty for this particular jeep was Rs.6.7 million.
According to Perera in future the Customs Valuation Committee will decide on the duty on all imported vehicles from Japan, which would be calculated on the highest valuation of the particular vehicle category.
He said that the valuation figures would also be updated on the Customs website.
The Vehicle Importers Associations, represented at the press briefing, also denied the statement made by the JVP leader and commended the minister for bringing in a sustainable solution for valuing vehicles in future.
“The stable valuation system will help the industry to mitigate the discrepancy,” they pointed out.
They also asserted that this was the highest tax imposed on Prado jeeps thus far by Sri Lanka Customs.
Sri Lanka Customs recently conducted the investigation about 189 Prado jeeps imported into the country.
Noting that an investigation should have a fair timeline on commencement and completion Customs Chief said the matter was sorted according to rules and regulations of the Government.
“I have not received any documentation to evidence that there were any undervalued invoices found during investigations. As a responsible Government servant I say that we cannot stop importing vehicles to conduct an investigation — otherwise it won’t be facilitation to the public but rather harassment,” Sri Lanka Customs Director General Chulananda Perera told journalists. “As the Custom was able to collect the due taxes, there was no need to carry out further investigation on the same,” Perera said.
Despite that Customs Chief’s claim that no undervalued invoices were found during investigation carried out of the 189 Prado jeeps, vehicle importers maintained that there were in fact three to four deliberately undervalued invoices found during investigations.
“I have not received any documentation that there were any undervalued invoices found during investigations. As a responsible Government servant I say that we cannot stop importing vehicles and conduct an investigation — otherwise it won’t be facilitation to the public rather harassment,” Sri Lanka Customs Director General Chulananda Perera told journalist at a media briefing held at Finance Ministry in Colombo yesterday.
However, the vehicle importers pointed out that there were three to four purposely undervalued invoices found during investigations.
Sri Lanka Customs recently conducted an investigation over 189 Prado jeeps imported into the country.
Noting that an investigation should have a fair timeline on commencement and completion Customs Chief said the matter was sorted according to rules and regulations of the Government.
“As the Custom was able to collect the due taxes, there was no need to carry out further investigation on the same,” Perera said.
