Sri Lankan exporters express concern over withdrawal of SVAT system
ECONOMYNEXT – The Exporters Association of Sri Lanka (EASL) has urged the government to retain an existing paperless value added tax refund scheme until a proposed electronic tax administration is fully operational.
In a statement, the EASL asked the finance ministry and the Department of Inland Revenue to ensure the electronic Revenue Administration Management Information System, known as RAMIS, will be operational by January 2017.
The EASL, which represent the majority of Sri Lankan exporters, small, medium and large, said exporters were “deeply concerned” at the announcement that the SVAT (Simplified Value Added Tax) will be suspended.
It said exporters have been assured that RAMIS will allay their concerns as it will replace the current SVAT scheme.
“Hitherto the paperless SVAT system provided exporters with a significant level of relief towards the constraints on its cash flows, as, prior to that, exporters endured delays of months and even years, to recover the significant value of VAT they reposed with the department” they said.
“It is for this reason that exporters are needing to reiterate that there should not be a hiatus in the transition from SVAT to RAMIS and that the current SVAT system must remain operational until RAMIS is in place as projected.”
(COLOMBO, Dec 9, 2016)