VATupdate

Share this post on

Exporters Rally Against Removal of Simplified Value Added Tax System in Sri Lanka

  • Sri Lankan exporters oppose the removal of the Simplified Value Added Tax (SVAT) system
  • Removal of SVAT will require exporters to pay VAT upfront, straining cash flow and tying up capital
  • Exporters advocate for maintaining SVAT until a functional VAT refund mechanism is in place
  • Reverting to standard VAT system will reintroduce paperwork and slow refund process
  • Increased costs and complexities could erode competitive edge of Sri Lankan exporters
  • Financial and administrative challenges may discourage businesses from pursuing export opportunities
  • Smaller businesses with less financial resilience and administrative capacity will be disproportionately affected
  • SVAT system provided key benefits by deferring VAT payments and simplifying refund process
  • SVAT streamlined VAT process, minimized paperwork, and lowered operating costs for exporters
  • SVAT ensured efficient and prompt VAT crediting, offering greater financial stability to exporters.

Source: dailymirror.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.

Sponsors:

Advertisements:

  • VAT news