Ceylon Chamber welcomes SVAT repeal deferment

The Ceylon Chamber of Commerce (CCC) yesterday welcomed the decision by the government to defer the implementation of the Simplified Value-Added Tax (SVAT) scheme to April 1, 2025. 
The bill, which provided to repeal SVAT, effective from January 1, 2024, raised several concerns among various sectors, including exporters registered under the current SVAT system. 

“This postponement allows businesses and individuals, particularly exporters, ample time to adjust operations to adapt to the impending changes. It also affords the government the necessary space to establish a strong tax repayment mechanism. 
These efforts would ensure a smoother transition and mitigate the risk of financial instability, thereby aiding in the country’s overall economic wellbeing,” the CCC said in a statement to the media yesterday.

The CCC shared that it views the development as a positive step towards collaborative policymaking, which is beneficial to the country’s overall economic landscape and it resonates with the CCC’s core belief in the importance of constructive dialogue and its role in shaping effective, dynamic policy landscapes.