Duty free car permits of state officials sold to third parties

Vijayani EDIRISINGHE

A large scale racket where duty free vehicle import permits issued to executive grade officers of government departments are being sold to third parties has been uncovered.

Certain officers in the state sector are granted duty free permits to import vehicles as a special privilege.

According to details that have surfaced, certain large scale vehicle importers have employed separate brokers to purchase these permits.

It is further revealed that a permit is sold between Rs 700,000 and Rs one million.

According to inquiries carried out across the Customs and the Department of Motor Vehicles, a majority of such officials are selling their duty free permits.

The government receives a huge revenue as customs duties from vehicle imports.

Despite this, it has granted this special privilege to government officers in recognition of their official status, the Finance Ministry states.

The permits are issued by the Finance Ministry under certain conditions. Accordingly, a vehicle imported through this special duty free permit cannot be transferred. Under the new circular issued in 2010, around 8,000 government officials have obtained duty free permits.

In addition, a further 12,000 have applied for the privilege and the Finance Ministry is in the process of issuing permits to the new batch as well.

According to an official at the Finance Ministry, on certain occasions a new permit is issued after a five year period to the same importer.

The duty free concession for vehicle imports are granted subject to strict conditions, one of which is that such a permit is non- transferable.

However, a large number of state officials have abused this privilege and disposed their vehicles to third parties, the official said.

This cheating comes to light only after three years when such vehicles which are sold to the third party are brought for registration by the new owner.

Vehicle importers too make enormous profits by selling super luxury vehicles imported under these permits.