The Spices and Allied Products Producers’ and Traders’ Association (SAPPTA) yesterday welcomed the government’s decision to postpone the abolishment of Simplified Value Added Tax (SVAT) system as proposed in the budget 2017.
The association, which is a part of the premier business chamber, Ceylon Chamber of Commerce, in a statement thanked the Prime Minister Ranil Wickremesinghe, Finance Minister Ravi Karunanayake, Development Strategies and International Trade Minister Malik Samarawickrama and International Trade State Minister Sujeewa Senasinghe for the decision taken to postpone the abolition of the SVAT system which was due to come into effect on April 1, 2017.
Previously, the SVAT system was to be abolished on January 1, 2017 as announced in the budget, but was subsequently postponed to April 1, 2017 amid the lobbying of business chambers and trade association.
They stressed the SVAT system should be continued until a robust VAT refund mechanism is put in place.
“The decision to postpone the abolition of the SVAT system will reduce cash flow issues and increase competitiveness of exporters,” SAPPTA noted.