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Chinese BYD and Its Local Agent Accused of Massive Tax Fraud in Sri Lanka

If proven, the scandal could expose a major breach in customs enforcement, raising disturbing questions about corruption, foreign influence, and just how far powerful actors are willing to go to rig the system for profit.

1 min read
BYD car [Michael Förtsch/Unsplash]

Samagi Jana Balawegaya MP Mujibur Rahuman has accused Chinese electric vehicle giant BYD and its local agents in Sri Lanka of orchestrating a sophisticated tax evasion scheme—one that could be draining millions from government coffers.

Rahuman alleges that BYD vehicles, particularly the popular ATTO 3 model, are being imported under suspicious and inconsistent specifications, allowing importers to pay dramatically reduced taxes. In one striking example, a brand-new BYD ATTO 3 is declared at 100 kilowatts (kW) and taxed at Rs. 5.5 million, while a reconditioned model with a higher 150kW rating is taxed at just Rs. 1 million. The discrepancy? A staggering Rs. 4.5 million per vehicle.

According to Rahuman, the BYD website confirms there is no 100kW version of the ATTO 3—only 150kW. This revelation suggests that the vehicles may be deliberately under-declared when brought into the country, allowing importers to manipulate the system. “It’s a blatant racket,” Rahuman told Parliament. “How can a more powerful, used vehicle be taxed four and a half million rupees less than a brand-new one? It defies logic and reeks of collusion.”

The MP questioned whether the local BYD agents have political protection, hinting at potential links to powerful individuals in the government. “This looks very similar to the container scandal. Someone’s making sure these vehicles pass through without proper scrutiny,” he said.

Although Sri Lanka is no longer in freefall, the nation is still climbing out of its worst economic disaster in history. As the country struggles to rebuild trust in institutions and balance its books, revelations like this threaten to erode confidence and derail recovery efforts.

Rahuman urged immediate investigation into the importers and those facilitating the alleged fraud. “This is not just a paperwork error—it’s a full-blown scam. And the government must answer: who is protecting these crooks?”

Sri Lanka Guardian

The Sri Lanka Guardian is an online web portal founded in August 2007 by a group of concerned Sri Lankan citizens including journalists, activists, academics and retired civil servants. We are independent and non-profit. Email: editor@slguardian.org

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