Motor traders cry foul over Finance Ministry’s vehicle valuation system
View(s):Sri Lanka motor traders are complaining the Finance Ministry’s action to take over the vehicle valuation functions for tax purposes from the Customs Department, disrupting vehicle clearing operations. Finance Minister Ravi Karunanayake has issued a directive to the ministry to determine the minimum value of vehicles being imported to the country for the purpose of levying taxes. A newly recruited team of officials is handling these duties replacing experienced customs officers and it has caused delays in the clearance of vehicles from the port, several automotive franchise holders told the Business Times. Those officers have no knowledge in vehicle valuation and the system has been messed up by them, a leading automotive franchise holder said.
The action taken by the Minister has led to the Customs officers distancing themselves from the government’s new revenue collection initiative on motor vehicles, a trade union official told the Business Times adding that officers have been denied opportunity to claim cash rewards from the penalties imposed on the importers under the new set up. The valuation process of motor vehicles for tax purposes was revised and the Special Committee appointed to determine the minimum value for all motor vehicles for customs purposes had been disbanded by the ministry. A new committee headed by the Director General of Customs has been appointed replacing the valuation committee.
This committee has published a new valuation data base in the Customs web site and it was found to be incorrect as some officials in the committee have given false data. This has resulted in the delay in clearing vehicles causing severe difficulties for importers and disrupts the government’s initiative to recover levies on the actual values of motor vehicles obtained from the manufactures and published as minimum value for customs purposes. The ministry has been compelled to take over the functions of vehicle valuation for tax purposes following this action of certain officials to derail the government’s revenue collection measures, official sources said. However motor traders noted that the present system has created more problems due to the involvement of inexperienced ministry officials in the duties of the Customs Department.