The Free Trade Zone Manufactures’ Association (FTZMA) has extends its appreciation to President Anura Kumara Dissanayake for the decision taken to continue with current SVAT scheme beyond April 2025.
The FTZMA being the sole trade chamber representing BOI investor companies in the apparel and non-apparel manufacturers and exporters in the island extends its wholehearted appreciation to you for proposing to continue with Simplified Value Added Tax (SVAT) scheme beyond April 2025.
FTZMA President Dhammika Fernando said, ‘’The removal of current SVAT scheme would result in a significant cash flow burden to exporters and other zero-rated suppliers, given the delay in implementing a strong tax repaying mechanism by Inland Revenue Department (IRD) for value-added tax repayment process.
‘’Therefore, given that the intention of introducing SVAT scheme has been able to provide a great relief to our industry stakeholders and trade bodies all the while.
‘’We as a trade chamber view your decision as a clear testament to the Government’s commitment & due diligence to a constructive approach towards policymaking, ultimately safeguarding the economic landscape of our nation,’’ he said.
‘’We would remain committed to working collaboratively with your government and all stakeholders to ensure continued growth and prosperity of our export industries.’’ Meanwhile Earnest and.Young stated, “The removal of the SVAT scheme will result in a significant cashflow burden for exporters and other zero-rated suppliers, given the delays in processing refunds.”
‘’Therefore, given that the intention of introducing the SVAT scheme was to provide a relief to such persons, the President in his speech mentioned that he proposes to continue with the SVAT scheme and that this will be agreed with the IMF.’’
