Acting Chairman of the Joint Apparel Association Forum (JAAF) Noel Priyatilleke has requested the government to introduce a transparent single digit VAT system terming it to be ‘an absolute necessity for the economy to grow’. Addressing the post business session after the 10th Annual General Meeting of JAAF, Priyatilleke said that if not for the introduction of the suspended VAT scheme, due to the complexities attributed to VAT administration system including refund mechanism and double digit rate, the apparel industry has not been able to perform. 

“However, even today despite the presence of SVAT system, further reforms are recommended in the larger interest of the economy. Your attention is requested in this regard,” Priyatilleke said addressing the Chief Guest at the event, Secretary to the Treasury, Ministry of Finance and Planning and Economic Development, P B Jayasundara.

The appeal for VAT reductions comes at a time when JAAF has announced that in the calendar year 2013, Sri Lanka’s apparel exports had reached the highest ever level of 4.3 billion dollars (Rs 28,152 crores) compared with 3.8 billion dollars (Rs 23,772 crores) in 2012. Priyatilleke pointed out that now the challenge ahead is not only to sustain this business but also to grow because the government expects Sri Lankan apparel, tea and rubber to fetch a turnover of 10 billion dollars (Rs 62,560 crores) by 2016; and Sri Lankan apparel has also to be among the first ten apparel exporter countries of the world by 2020. 

Jaafsl.com