Sri Lanka Customs has confirmed that an official inquiry is underway into the declared motor capacity of a consignment of BYD electric vehicles, amid suspicions that the vehicles may have been underdeclared to reduce tax obligations.
Appearing before the Committee on Public Finance (COPF), Customs Senior Director and spokesperson Seevali Arukgoda said the investigation was launched following complaints from industry stakeholders and information received from Deputy Minister of Finance.
The full consignment of vehicles was declared as having 100-kilowatt (kW) motors, but Customs is now examining whether they are actually equipped with 150kW motors—a classification that would significantly raise applicable excise duties.
Customs officials have attributed delays in the investigation to a lack of timely support from the importer, John Keells CG Auto (Pvt) Ltd, the official BYD agent in Sri Lanka.
“We told them we need to check the Motor, but they say it’s a process, so the delay is from their end,” the Customs spokesman added.
Authorities are also probing whether the vehicles’ software may have been altered to indicate a lower motor output than the actual capacity. The University of Moratuwa is expected to assist with technical testing to verify the true specifications of the motors.
COPF Chair MP Harsha de Silva noted that testing must adhere to international standards, as the matter involves a foreign manufacturer.
The investigation comes in the wake of Customs detaining nearly 1,000 BYD vehicles at the Colombo Port. While the importer maintains that the vehicles are compliant and feature 100kW motors, a final determination from Customs is still pending. (Newswire)
