Thursday Nov 21, 2024
Thursday Nov 21, 2024
Wednesday, 13 September 2023 00:40 - - {{hitsCtrl.values.hits}}
The Joint Apparel Association Forum (JAAF) yesterday welcomed the recent Cabinet approval for the deferment of the Simplified Value-Added Tax (SVAT) scheme, set to take effect from 1 April 2025.
“JAAF is particularly appreciative of the decision to ensure that a “strong tax repaying mechanism” is in place before proceeding with the removal of SVAT.
This decision reflects the dedicated efforts of Government stakeholders to protect the export industry, for which JAAF is thankful to,” the apparel industry grouping said in a statement.
It said the deferment comes at a critical time for the exporters who have been grappling with declining exports and therefore, risk of cash flow disruption if SVAT was removed without a viable refund system being in place.
Exporters pointed out that as an approach towards repealing the SVAT system, a step-by-step approach is required until a cash-less refund mechanism is established.
“The deferment offers a lifeline to our sector, ensuring a smoother transition towards a revamped tax framework. We remain committed to working collaboratively with all stakeholders to ensure the industry's continued growth and prosperity,” JAAF said.
