Customs defend halt on cross-border LC vehicle imports, cites widespread duty fraud

Sri Lanka customs collected Rs.200 billion in taxes from vehicle imports so far | "The majority, not all, use a third country to undervalue the vehicle and commit duty fraud,"

- NISHEL FERNANDO

Sri Lanka Customs yesterday defended its recent decision to halt the clearance of vehicles imported under cross-border Letters of Credit (LCs), citing the measure as a crucial step to combat significant tax evasion through fraudulent under-valuation.

Responding to a Daily Mirror story published Wednesday which highlighted the plight of importers with hundreds of vehicles stranded at the port, Customs officials clarified that the move enforces existing regulations to prevent the loss of billions in state revenue.