FTZMA welcomes govt’s decision to postpone SVAT scheme repeal

The Free Trade Zone Manufacturers’ Association (FTZMA), representing the collective voice of BOI- affiliated companies in our nation, extends its wholehearted appreciation for the Government’s prudent choice to defer the repeal of the Simplified Value Added Tax (SVAT) scheme until April 1, 2025.

FTZMA wishes to convey its sincere gratitude to the Government, the Board of Investment (BOI), and all relevant authorities for their foresight in granting this extension of the SVAT scheme.

The FTZMA has steadfastly advocated to maintain the current system, especially for exporters, recognizing the severe financial challenges exporters endured during the pre-SVAT era. It is worth noting that the previous refund system was marred by a notorious SVAT fraud of significant proportions.

We emphasize to the Government that should the country revert to a refund- based system, a robust and fool proof mechanism must be established within the Inland Revenue Department (IRD) to ensure timely refunds, adhering to the 45-day timeframe stipulated by regulations.

Simultaneously, we urge the Ministry of Finance and the IRD to conscientiously address the genuine concerns raised by various trade chambers and associations, all of which directly impact the export sector.

This collaborative effort is essential to safeguard the interests of exporters who have grappled with declining revenues since the beginning of the year. FTZMA also believes that this postponement offers businesses and individuals, particularly exporters, ample time to align their operations with the forthcoming changes.

We view this decision as a clear testament to the Government’s commitment to a constructive approach to policymaking, ultimately safeguarding the economic landscape of our nation.

Nonetheless, FTZMA remains steadfast in its stance that the existing SVAT system, which has proven itself to be seamless and transparent for cashless settlements, should be preserved for exporters. It is a system tried and tested, ensuring a frictionless business environment.

FTZMA continues to be cautiously optimistic about the path ahead, where collaborative efforts can forge a brighter future for our nation’s economic prosperity.

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