FTZMA meets BOI Acting Chairman and Director General

FTZMA Executive Committee members, led by the Chairman, Dhammika Fernando met the Acting BOI Chairman Dr. Sulakshana Jayawardena and Director General Renuka Weerakoon to discuss several urgent matters affecting BOI enterprises and export-oriented manufacturers.

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A key focus of the meeting was the concern faced by the local Suppliers, indirect exporters / deemed exporters regarding the 18% VAT payable on raw material purchases from such suppliers.

FTZMA highlighted that imposing VAT on locally sourced production inputs used for exports creates an unfair cash-flow burden, weakens export competitiveness, increases net foreign exchange outflows and places export manufacturers at a disadvantage.

FTZMA strongly emphasised the need for a practical mechanism to extend VAT exemptions, zero-rating facilities, to both indirect and local suppliers when supplying to the Exporters!