Vehicle importers challenge Treasury’s 35% surcharge proposal in court

Friday, 3 October 2025 02:07 - - {{hitsCtrl.values.hits}}

Vehicle importers yesterday objected to a Treasury proposal requiring a 35% surcharge for the release of vehicles currently detained by Sri Lanka Customs. The matter was taken up before the Court of Appeal, where counsels representing several importers argued against the move.

The vehicles in question had been brought into the country under letters of credit opened at foreign banks, leading to their detention.

Appearing for a group of importers, President’s Counsel Faiszer Musthapha told Court

that imposing such a surcharge would drive the cost of the vehicles above their actual value.

He also argued that releasing them on a bond was unnecessary, suggesting instead that an undertaking to court by the petitioners should suffice.

President’s Counsels Ikram Mohamed and Sanjeeva Jayawardena, representing other importers, also raised objections, claiming the Customs’ decision to hold the vehicles was unlawful.

During an earlier hearing on 30 September the bench asked Additional Solicitor General Sumathi Dharmawardena, representing Customs, to examine alternatives for release, such as corporate or personal bonds or other undertakings to court.

The bench directed him to present a report on possible arrangements at the next hearing scheduled for 10 October.