Sri Lanka Customs has detained nearly 1,000 Chinese-made BYD electric vehicles at the port over suspected discrepancies in declared motor capacities that directly affect import taxes, EconomyNext reported.
The vehicles, imported in six consignments this month, were all declared as having 100-kilowatt (kW) motors. However, authorities suspect the actual capacity could be 150kW — a difference that significantly increases the applicable excise duty.
Under current tax rules, a 100kW electric vehicle is subject to an estimated Rs. 2.4 million in direct taxes, while a 150kW version can be taxed as high as Rs. 5.4 million, excluding several other taxes.
Customs is now investigating whether the lower declarations were an attempt to evade higher duties.
Opposition MP Mujibur Rahman raised the issue in Parliament last week, highlighting what he described as a Rs. 4.5 million tax gap between new and used BYD ATTO 3 models.
“A brand-new BYD ATTO 3 is being taxed as a 100kW vehicle at Rs. 5.5 million, while a used one is registered as 150kW and taxed at Rs. 10 million,” Rahman said. “But BYD’s own website lists only a 150kW ATTO 3 — not a 100kW version.”
He also questioned whether the importer has political or business links that facilitated clearance under the lower tax bracket, drawing comparisons to previously controversial container releases.
According to the EconomyNext report, more than 1,000 BYD vehicles have already been cleared and released to buyers under the 100kW classification. While BYD does offer a 100kW version in some international markets, the standard ATTO 3 is widely known to feature a 150kW motor.
A final ruling by Sri Lanka Customs is pending. Reclassification of the vehicles could result in hefty retroactive duties for importers and additional costs for end users.
Neither Sri Lanka Customs nor the official BYD agent in Sri Lanka has issued an official response.
Several BYD ATTO 3 customers awaiting delivery told Newswire that their vehicles, which were due to be delivered this month, have now been delayed. They said the local agent informed them of the delay but didnot provide any reason. (Newswire)
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