COPF flags massive revenue losses from vehicle import valuation practices

THE Committee on Public Finance (CoPF) last week raised serious concerns over how used vehicle imports are being valued, warning that the Government could be losing billions of rupees each year due to outdated Customs practices.

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During the meeting, CoPF Chair MP Dr. Harsha de Silva raised questions about the rationale behind depreciating vehicle values by 15% even for imports with mileage as low as under 50 kilometres or with an age of only five days.

Sri Lanka Customs Additional Director General Seevali Arukgoda explained that current depreciation calculations are based on a Gazette from 2016, with no updated instructions issued since then.

"We have not received any direction neither on timelines nor mileage on how to apply depreciation. We have been practicing as per the Gazette cited depreciation guidelines," he added.

Dr. de Silva challenged this explanation, questioning why Sri Lanka Customs had failed to notify higher authorities about these apparent loopholes.