Customs Shock: BYD EV Scandal Sparks Tax Storm

Nearly 1,000 shiny, Chinese-made BYD electric vehicles, worth billions in rupees, are now at the center of a tax evasion scandal that has jolted Sri Lanka’s auto industry and raised eyebrows all the way to Parliament.

The Customs Department has detained six massive consignments of BYD electric vehicles, all declared as having 100-kilowatt motors. But there’s a twist. Investigators now suspect the vehicles actually house 150kW motors, a quiet but crucial detail that more than doubles the tax bill.

Why does it matter? Under current tax rules, a 100kW EV is taxed at around Rs. 2.4 million. But bump that to 150kW, and the duty jumps to a staggering Rs. 5.4 million — and that’s just the beginning before other charges kick in.

The numbers don’t lie. If the suspicions hold true, the state may have lost billions in revenue — and importers could be staring down a financial disaster.

Opposition MP Mujibur Rahman didn’t hold back. Raising the issue in Parliament, he pointed out a Rs. 4.5 million gap in excise duties between new and used BYD ATTO 3 vehicles.

“How can a used ATTO 3 be taxed at Rs. 10 million as a 150kW vehicle, while a brand-new one sails through at Rs. 5.5 million under a 100kW tag?” Rahman asked. “Even BYD’s own website doesn’t mention a 100kW ATTO 3.”

The allegations hint at something bigger: possible political cover or business favoritism to allow lower declarations and smooth customs clearance — echoes of past shady container deals.

And the plot thickens.

Over 1,000 BYD vehicles have already been cleared under the 100kW label and handed over to customers. If Customs reclassifies them as 150kW vehicles, retroactive tax demands could hit importers like a freight train — and possibly spill over to unsuspecting buyers.

Meanwhile, dozens of customers awaiting their new BYD cars are suddenly left hanging. Several told Newswire their deliveries have been quietly delayed — with no official explanation.

Neither Sri Lanka Customs nor the BYD agent has issued a statement. But silence, in this case, speaks volumes.

Will this turn into a billion-rupee bust-up? Or will it be swept under the rug like so many scandals before?

The road ahead looks anything but smooth.