- NCE is concerned about the proposed removal of the Simplified VAT system.
- NCE commends the government’s efforts towards digital transformation but expresses concerns about the potential consequences for the export sector.
- Exporters are facing challenges including fluctuating global demand, fierce international competition, and domestic operational constraints.
- The SVAT system provides exporters with a critical advantage by minimizing cash flow disruptions.
- The proposed move to a refund-based system relies on the assumption that digitalization will guarantee timely and efficient VAT refunds.
- NCE stresses the importance of rigorous testing to ensure the new system operates flawlessly.
- Historical experiences with VAT refunds highlight significant concerns, including prolonged delays and cumbersome administrative procedures.
- NCE urges the government to adopt a phased, carefully monitored approach to the transition.
- NCE recommends pilot testing, a clear implementation timeline, stakeholder support and training, prompt refund assurances, and safeguards against system failures.
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.
