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. |