The Hon. (Dr.) Anil Jayantha - Minister of Labour and Deputy Minister of Economic Development

¶ 01 Hon. Speaker, there are eight questions.

¶ 02 1. The decision to end SVAT is not sudden. It follows long-term study and forms part of moving from multiple parallel systems to a unified system — replacing SVAT and strengthening IRD while moving away from RAMIS as it existed. Past RAMIS experience suggested refunds were not prompt; now IRD has prepared the required facilities.

¶ 03 2. On legal, administrative and technological safeguards: the Government’s aim is digitalization. A risk assessment system will categorize low, medium and high risk. Within 45 days, refunds will be made for low and medium risk; high risk will be paid after basic verification. The risk assessment is system-based.

¶ 04 3. As a system-embedded risk engine is being implemented, a separate third-party ratification is not necessary.

¶ 05 4. On deemed exporters and cash-flow: if refunds are processed automatically under the system, the need for deemed status diminishes. Measures are in place to avoid cash-flow disruption during the transition.

¶ 06 5. Regulations and their requirements will be implemented to enable refunds at the earliest possible time, subject to correct and complete submissions by exporters. Compliance with accurate e-submissions is essential.

¶ 07 6. Yes. A risk-based system categorizing high/medium/low risk is already adopted. Refunds for low and medium categories will be paid within 45 days. RAMIS has been developed to support e-filing, together with e-invoicing and e-filing of VAT returns, now under testing.

¶ 08 7. IMF recommendations have been tabled in Parliament and are available on the Treasury website.

¶ 09 8. IRD is arranging implementation. A risk-based mechanism will provide refunds in the shortest possible time to minimize exporter challenges. Provisions will be incorporated via an Amendment to the Act.

¶ 10 Thank you.