FTZMA welcomes government’s move on deferring Simplified VAT repeal

• Stresses need for govt. to have a robust and foolproof mechanism, if reverting to a refund-based system
• Calls on Finance Ministry and IRD to conscientiously address genuine concerns raised by various trade chambers and associations
• Says continues to be cautiously optimistic about path ahead

The Free Trade Zone Manufacturers’ Association (FTZMA), representing the collective voice of the Board of Investment-affiliated companies, this week joined in on commending the government to defer the repeal of the Simplified Value-Added Tax (SVAT) scheme until April 1, 2025.
The FTZMA has steadfastly advocated maintaining the current system, especially for the exporters, recognising the severe financial challenges the exporters endured during the pre-SVAT era. 
It asserted that it is worth noting that the previous refund system was marred by a notorious SVAT fraud of significant proportions.
“We emphasise to the government that should the country revert to a refund-based system, a robust and foolproof mechanism must be established within the Inland Revenue Department (IRD) to ensure timely refunds, adhering to the 45-day timeframe stipulated by regulations,” it said in a statement to the media.
Simultaneously, it urged the Finance Ministry and IRD to conscientiously address the genuine concerns raised by various trade chambers and associations, all of which directly impact the export sector. This collaborative effort is essential to safeguard the interests of the exporters, who have grappled with the declining revenues since the beginning of the year.
The FTZMA pointed out that the postponement offers businesses and individuals, particularly the exporters, ample time to align their operations with the forthcoming changes. 
“We view this decision as a clear testament to the government’s commitment to a constructive approach to policymaking, ultimately safeguarding the economic landscape of our nation,” it said.
The FTZMA said it remains steadfast in its stance that the existing SVAT system, which has proven itself to be seamless and transparent for cashless settlements, should be preserved for exporters. 
“It is a system tried and tested, ensuring a frictionless business environment. 
The FTZMA continues to be cautiously optimistic about the path ahead, where collaborative efforts can forge a brighter future for our nation’s economic prosperity,” it said.