New VAT refund system: Balancing hopes and concerns among stakeholders

A recent webinar hosted by the Committee for Research, Knowledge Mobilisation and Taxation (RKMT) of International Chamber of Commerce Sri Lanka (ICCSL) has stirred lively debate over the newly introduced risk-based VAT refund system.

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This system is crucial for businesses as it directly impacts their cash flow and operational efficiency. The hybrid event brought together tax experts, business leaders, and public officials to unpack the implications of the reforms for taxpayers and assess their readiness for implementation.

The webinar was moderated by RKMT Chairperson Dr. Nadee Dissanayake, and the session featured insights from panellists, Ernst & Young Principal - Tax Velauthaplillai Shakthivel, and KPMG Principal Tax and Regulatory Rifka Ziyard with technical explanations provided by IRD Commissioner P. Disabandara. ICCSL Chairman Shanil Fernando in his introduction, reminded participants that the new system isn’t meant to intimidate businesses, but rather to modernise and speed up refund processing for those who follow the rules.