Vehicle tax hike controversy grows as Niroshan Padukka alleges two businessmen opened LCs for 4,000 vehicles before duties rose.
Vehicle tax hike allegations have triggered fresh controversy after SJB organizer Niroshan Padukka claimed two businessmen ordered 4,000 vehicles before duties increased.
Former Provincial Council Member and Samagi Jana Balawegaya organizer for the Kesbewa electorate, Niroshan Padukka, alleged that the two businessmen had prior knowledge of confidential information regarding the extraordinary gazette increasing import customs duties on vehicles.
Speaking to the media at the Central Bank premises, Padukka claimed that this information had been used before the gazette was signed.
According to him, one businessman opened Letters of Credit for 3,500 vehicles, while another businessman opened Letters of Credit for 500 vehicles on the 15th.
Padukka alleged that the leak of internal information caused the government to lose more than Rs. 20 billion in tax revenue that should have been collected.
He further stated that the sudden opening of these Letters of Credit sharply increased demand for the US dollar in the country’s financial market.
As a result, he claimed, the dollar rate rose by Rs. 11, moving from Rs. 323 to Rs. 334.
Padukka described the incident as an even more serious fraud than the Treasury heist.
He also alleged that one of the businessmen involved in the transaction had previously committed tax fraud by understating the engine capacities of imported vehicles.
Padukka further claimed that the same individual had been awarded wind power plant projects without a tender process.
He also hinted that the businessman maintains close links with a political party connected to the current administration.
Padukka said he had visited the Central Bank to obtain information regarding the incident.
However, he claimed officials did not provide him with a proper opportunity to access the relevant details.
He also accused the Central Bank of abandoning its responsibility to supervise commercial banks.
Padukka said it was a serious issue that no attention had been paid to the opening of Letters of Credit worth more than Rs. 40 billion.
He further stated that the episode reflects what he called the “weakness and inexperience” of the current administration.
Padukka warned that the final burden of such decisions and alleged failures would eventually fall on the common people.
