Sri Lanka Customs has detained nearly 1,000 Chinese-made BYD electric vehicles at the Colombo Port amid suspicions of tax underpayment due to discrepancies in declared motor capacities, EconomyNext reported.
The vehicles, imported in six consignments this month, were declared as having 100-kilowatt (kW) motors.
However, customs officials suspect the actual capacity may be 150kW — a difference that significantly alters the applicable excise duty.
Under current regulations, a 100kW vehicle is taxed at around Rs. 2.4 million, while a 150kW version attracts up to Rs. 5.4 million, excluding other levies.
Authorities have launched an investigation into whether the misdeclaration was a deliberate attempt to evade higher import taxes.
The probe follows remarks in Parliament by Opposition MP Mujibur Rahman, who flagged inconsistencies in tax treatment between new and used BYD ATTO 3 models.
“A brand-new ATTO 3 is taxed as a 100kW vehicle at Rs. 5.5 million, while a used model is taxed at Rs. 10 million as a 150kW vehicle but BYD’s own global website only lists a 150kW ATTO 3,” Rahman said.
He further questioned whether the importer had political or commercial affiliations that enabled the vehicles to be cleared under a lower tax bracket, drawing parallels to previously controversial customs clearances.
Over 1,000 BYD vehicles have reportedly already been released to buyers under the 100kW classification.
While a 100kW version of the ATTO 3 exists in some global markets, the model is widely known to feature a 150kW motor as standard.
If the vehicles are reclassified, importers could face significant backdated tax liabilities, potentially impacting customers who have already taken delivery.
Meanwhile, prospective BYD ATTO 3 buyers reported delays in vehicle delivery, with the local agent offering no explanation for the holdup.
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