- The IMF is reconsidering conditions on the imposition of 18% VAT on the tourism industry in Sri Lanka.
- The Sri Lanka Association of Inbound Tour Operators (SLAITO) raised concerns about the sudden imposition of VAT on Destination Management Companies (DMCs).
- The Sri Lanka Tourism Development Authority (SLTDA) Chairman held a meeting with the IMF to request a reconsideration of the VAT condition.
- The IMF was receptive to the request and said they would take up the concern.
- The imposition of VAT could result in a loss of 200,000 tourists and $400 million in revenue.
- The DMCs would be compelled to absorb the 18% VAT, as rates given to tour operators overseas did not include it.
- The industry plans to include the VAT in tour quotes from November onwards.
- The late announcement of the removal of the VAT exemption makes it difficult to change tour package rates.
- The industry may have to curtail promotions to manage funds due to the impact of the VAT.
Source: sundaytimes.lk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
