‘TVRS provides greater exposure to global market’ | Daily News

‘TVRS provides greater exposure to global market’

Finance and Media Minister Mangala Samaraweera yesterday said that the Tourist VAT Refund Scheme (TVRS) will enable Sri Lankan goods to have greater exposure to the global market, bringing with it several positive economic spillovers.

He added that VAT is an end user of consumption tax and therefore should not be applied to goods and services that are consumed outside of Sri Lanka

“By introducing such a TVRS,Sri Lanka will be aligning itself with international best practices,” the minister added.

The Minister was speaking at the opening of the Tourist VAT Refund Scheme (TVRS) at the Bandaranaike International Airport yesterday.

Samaraweera added that neighbouring countries including Thailand and Singapore, have become regional shopping centres and utilizing VAT free shopping has been an impetus to this.

“Year around, tourists would visit increasingly for the sole purpose of shopping and international retailers have as a result invested heavily in these countries.”

“The TVRS has a particular importance for enhancing the attraction of Colombo as a destination.Today most tourists tend to bypass Colombo for attractions outside of the capital city,” the Minister said.

He added that there are already a number of shopping destinations with major global brands beginning to get established in Sri Lanka.This trend can only benefit and further expand with the tourist VAT refund mechanism.

Minister Samaraweera stressed that the government has made progress in tax collection and compliance which will help servicing outstanding debt repayments.

“The government is equally concerned to ensure that the taxation is fair, convenient and as non distortive as possible,” he added.

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