FTZMA welcomes postponement of SVAT removal

Friday, 15 September 2023 00:04 - - {{hitsCtrl.values.hits}}

The Free Trade Zone Manufacturers’ Association (FTZMA), yesterday welcomed the postponement of the removal of Special VAT as a prudent choice.

“FTZMA wishes to convey its sincere gratitude to the Government, the Board of Investment (BOI), and all relevant authorities for their foresight in granting this extension of the SVAT scheme. The FTZMA has steadfastly advocated to maintain the current system, especially for exporters, recognising the severe financial challenges that exporters endured during the pre-SVAT era. It is worth noting that the previous refund system was marred by a notorious SVAT fraud of significant proportions,” it said in a statement.

“We emphasise to the Government of Sri Lanka (GOSL) that should the country revert to a refund-based system, a robust and foolproof mechanism must be established within the Inland Revenue Department (IRD) to ensure timely refunds, adhering to the 45-day timeframe stipulated by regulations,” it added.

Simultaneously, FTZMA urged the Finance Ministry and the Inland Revenue Department (IRD) to conscientiously address the genuine concerns raised by various trade chambers and associations, all of which directly impact the export sector. This collaborative effort is essential to safeguard the interests of exporters who have grappled with declining revenues since the beginning of the year.

FTZMA believes that this postponement offers businesses and individuals, particularly exporters, ample time to align their operations with the forthcoming changes. We view this decision as a clear testament to the Government's commitment to a constructive approach to policy making, ultimately safeguarding the economic landscape of the nation.

FTZMA said it remains steadfast in its stance that the existing SVAT system, which has proven itself to be seamless and transparent for cashless settlements, should be preserved for exporters. It is a system tried and tested, ensuring a frictionless business environment.

“FTZMA continues to be cautiously optimistic of the path ahead, where collaborative efforts can forge a brighter future for the nation's economic prosperity,” it added.