Reduction in ESC welcome - Exporters’ Association

The reduction of Economic Service Charge (ESC) from 0.5% to 0.25% on all exports is most welcome, Acting Chairman, Exporters’ Association of Sri Lanka Lakshman de Silva said.

He said that it was a step in the right direction.

The tax and other benefits to the gems and jewellery industry are positive signals, as they will stimulate more exports in this sector.

However, the reduction in the tax holiday to a three-year period may act as a disincentive and may stifle the growth of the Industry in the future.

It is also hoped that the proposed increase in the export license fee will be kept to a minimum or better still if no burdens are placed on the export sector in order that the export sector remains competitive and bring in much needed foreign exchange to the country.