Japanese exporters ask for early notice on tax changes

• Mangala assures export friendly tax policies to spur investment

A delegation of Japanese exporters based in Sri Lanka has requested the Government to give at least six months’ notice before changing its tax policy, the Finance Ministry said in a statement yesterday.  

A delegation of representatives from the Japanese Chamber of Commerce and Industry in Sri Lanka, accompanied by the Japanese Ambassador to Sri Lanka Kenichi Suganuma, called on Finance Minister Mangala Samaraweera on Monday.

The representatives briefed Minister Samaraweera on various investment projects undertaken by the Japanese Chamber of Commerce and Industry in the country and exchanged views on the ease of doing business in Sri Lanka. 

The Japanese delegation apprised the Minister of issues faced by investors with regard to various tax reforms implemented from time to time. They stated that most of their products are being exported under forward contract with buyers and any sudden amendment to the tax regime may affect their exports.

“The Japanese delegates requested the Finance Minister to give them at least six months’ notice prior to the enforcement of any tax amendments, as it might have an adverse impact on exports,” the statement said. 

Samaraweera in response had stated that since Sri Lanka intends to implement an investor and export friendly economic policy, the Government will implement tax reforms favourable to exports. 

The Japanese Ambassador was accompanied by a high-profile business delegation consisting of the Chairman/President of Training and Service Industry Group of Mitsubishi Corporation Eiji Suga, Vice Chairman of Taisei Corporation Hiroki Horikawa, Vice Chairman of Noritake Lanka Porcelain Yoshinari Shimaya, Vice President of Itochu Corporation Akira Matsui, Vice President of Oriental Consultants Noboru Kitazawa, Vice President of YKK Lanka Ryuhei Nagahata and the Secretary General of the Japan External Trade Organisation (JETRO) Kazuhiko Obama.