Complicated tax system irks exporters

Ramani Kangaraarachchi

Exporters have to pay 10 taxes at the Customs and various places and this is taking off the competitiveness of Lankan products, President of Exporters' Association and Chairman DSI group D. K. Rajapaksha said.

Speaking at an event in Colombo organised to raise their voice prior to the forthcoming budget he said they are not asking the Government to reduce taxes. "The country is fighting a war and the country needs additional funds. Exporters are ready to pay taxes. However they should look at simplifying the procedure as delays increase our overheads," he said.

Rajapaksha said that since they have to go to several departments to pay these taxes, their overheads increase which force them to increase prices. "Due to this we cannot compete in the international markets as our production cost goes up," he said.

The Chairman also said that repayment of the VAT refund too is delayed. "Due to this we have to face problems with banks," he said. The way out of this problem is to issue a certificate stating the amount of VAT due to them. "With this we can go to the banks and settle problems," he said. The members also requested the Government to halt ad-hoc salary increments from time to time.

"This too is creating problems for us," he said.