- 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.
