Biggest vehicle import fraud busted

by L. S. A. Wedaarachchi

The Customs Department's inquiry into the car import racket has revealed that millions of rupees in taxes were deprived to the government by the mastermind behind it.

The car exporter, a Sri Lankan living in Japan with dual visas had obtained the value of the cars from the buyers, while the LCs were opened for the undervalued prices, of the cars.

Assistant Customs Superintendent - Post Clearance and Audit Section, Sarath Fernando said that the practice has been continuing for several years. Fernando said statements from the car owners relevant vehicle dealers and the persons who sent the cheques to Japan have been recorded.

"It is clear that the car exporter received the full value of the cars before he shipped them to Sri Lanka from Japan. LCs were opened according to the undervaluations to circumvent the correct taxes, he said.

He said that an investigation is being held to assess the value of the fraud which has been done for the past several years. One hundred and forty cheques valued at over Rs. 180 million sent through an international courier service from Japan to a vehicle importing agency in Kotte were traced by Customs officials two weeks ago.