A civil society organisation (CSO) yesterday (27) urged the Customs to take immediate action with regard to the alleged duty fraud involving 1,728 Bayerische Motoren Werke AG (BMW) vehicles as per Court directives.
The Citizens of the People’s Struggle held a protest in front of the Sri Lanka Customs’ headquarters in Colombo, where they handed over a letter addressed to the Customs Director General (DG) Sarath Nonis demanding immediate action regarding the matter, and warning that the failure to take such action would result in intensified opposition from activists.
The case involves allegedly importing 1,728 BMW vehicles under concessionary duty permits, which are generally issued to public officials, when in reality those vehicles were not imported by the permit holders. Earlier, it was alleged that the Sri Lanka Customs had ignored or suppressed the matter, which is said to involve an around Rs. 16 billion duty fraud, causing a massive loss to the state coffers.
Speaking to The Daily Morning following the protest, the organisation’s General Secretary Chanaka Bandara said that they seek an immediate discussion with Nonis to inquire about the status quo of the steps taken by the Customs, and that in the event of an unsatisfactory response from the Customs, the sacking of Nonis will also be sought over his inaction.
With regard to the relevant investigations, emphasising that this is a matter worth of Rs. 16 billion which should have been charged as duty, Bandara said that the Court of Appeal has issued a directive to the Customs DG to take action in accordance with the Customs Ordinance. He alleged that as per the information received, despite the directive, the DG is yet to send even a notice to the relevant respondents. In addition, he said that if the necessary steps are not taken forthwith, it would be difficult to get the relevant tax revenue from the private company involved in the importation of the BMW vehicles which he claimed has advertised to sell its assets. “This duty fraud creates a problematic situation concerning export and import activities between Sri Lanka and Germany and also concerning other international import and export activities. International trading companies will be monitoring the investigations conducted by the Customs into this duty fraud,” Bandara said, adding that he will not hesitate to direct the German Embassy in Sri Lanka’s attention to the matter if the necessary steps are not taken.
In addition, noting that serious irregularities are taking place in connection with the Sri Lanka Customs, Bandara pointed out that the matter around the Rs. 16 billion fraud cannot be ignored, especially in a context where the tax revenue has become more important than before.
The Daily Morning’s attempts to contact the Customs to inquire about the matter were not successful.