Govt. to remove taxation of exporters
In fulfilling its goal of improving private sector investment, the Government of Sri Lanka (GoSL) is aiming tointegrate into regional and global supply chains and higher levels of FDI.
The GoSL is expected to deliberate on waiving taxes on exporters including Cess with the hope thatr it will facilitate added exports. The average Cess for certain export products stands at LKR 6 per kg.
Though Cess was introduced to formulate a fund from exporters which in turn could be used for promotions and to ‘increase value addition’the previous regime is said to have used the funds for political work, personal enrichment and unsuccessful projects.
“New export and trade policies are to be introduced shortly to increase the efficiency of trade facilitation, remove barriers to foreign investment entry and establishment (including access to land), enhance access to finance, and strengthen financial market infrastructure. These steps should help attract FDI and complement public investment,” said State Minister of Development Strategies and International Trade, Sujeewa Senasinghe.
According to Senasinghe the GoSL intends to introduce a new policy on exports by December.
In 2007 the exports share of GDP was 35% but has now declined to 14.9%, and he added that the GoSL intended to increase this by a whopping 200% at least.
“To boost trade and private sector development, the government will seek to reduce costs and bolster competitiveness. The key element in this work would be a review of Sri Lanka’s trade regime including an evaluation of para-tariffs and other non-tariff barriers that have led to a high level of effective protection and hampered exports.The aim is to increase the efficiency of trade facilitation, remove barriers to foreign investment entry and establishment (including access to land), enhance access to finance, and strengthen financial market infrastructure. These steps should help attract FDI and complement public investment,” he stated.
OSL TAKE:
Once taxes on exporters are removed it would encourage them to increase exports. This waiver of taxes and the Cess is an encouraging sign to those who would like to invest in Sri Lanka’s export industry.
| Article Code : | VBS/AT/06102017/Z_2 |