COLOMBO (News 1st); As Sri Lanka prepares to remove the Simplified Value Added Tax (SVAT) scheme on October 1st, the Joint Apparel Association Forum (JAAF) has called for a proven and seamless VAT refund mechanism to safeguard the stability of the country’s export sector. JAAF reaffirmed its commitment to working with government authorities during the transition, while expressing concern over the lack of a trial run to demonstrate the readiness of the Inland Revenue Department’s (IRD) systems to process refunds within the legally mandated 45-day window. The apparel industry, a key contributor to Sri Lanka’s export earnings, estimates that Rs. 12 billion will be paid in VAT once SVAT is removed. Timely refunds are essential to maintain cash flow and supply chain stability, especially amid global price pressures and reciprocal tariffs from the US.
Source: News 1st
