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Sri Lanka Textile Manufacturers’ Association urges VAT concession

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The Sri Lanka Textile Manufacturers’ Association urges the government to give the VAT concession, which is already given to the production of handloom textiles to the power loom textile manufacturers as well.

The VAT is imposed on local fabric production, but VAT is not imposed on imported fabrics. As an outcome of this situation, the market price of imported textiles will be lower than domestically produced textiles. Then it is doubtful that the consumer will act to buy locally produced handlooms at such a high price. The survival of the local textile industry depends on domestic sales. In a situation where VAT is not imposed on imported textiles, the consumer is not motivated to buy local textiles at a high price.

Sri Lanka Textile Manufacturers’ Association Chairman E.A.N.S Perera said therefore, that the livelihood of around 50,000 people who are engaged in the local textile manufacturing industry, especially in the power loom industry has been challenged by the decision to levy VAT only on the local manufacturing textile.

“At present, VAT exemption applies only to textiles produced by handloom operators in Sri Lanka and to imported handloom and power loom productions but not to local power loom productions,” he said.

Perera requested the government to provide this relief to power-loom textile manufacturers as well to ensure their existence further. In this regard, the association has also made submissions to President and Finance Minister Ranil Wickremesinghe, the President’s Office, Finance Ministry authorities, and other policymakers.

The post Sri Lanka Textile Manufacturers’ Association urges VAT concession appeared first on DailyNews.

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