Dear Member,
The National Chamber of Exporters (NCE) submits proposals to the National Budget Annually.
Based on the member suggestions, We have identified the following proposals.
Appreciate your input in this regard latest by 31st August 2023
1 ) Difficulty faced by the Exporters in reaching newer/non-traditional markets.
All foreign missions to appoint commercial officers to promote exports and to generate a report monthly the amount exports that have materialized with their intervention.
To introduce a web portal where all Sri Lankan Overseas Trade officers could update monthly information on credibility of potential customers, new needs and any other important update that would be beneficial to Exporters,
The Trade officers can be rewarded based on the efficiency which can be monitored easily.
2 ) High cost to obtain various standards and test certificates as required by the buyer.
Buyers are now insisting on various quality and test certificates and some of them cannot be obtained locally as there are no institutions who can issue such certificates. Therefore, exporters are forced to get these from overseas testing labs at an enormous cost. In addition to High cost to obtain quality certificates, Exporters have to meet the compliances annually, maintain the standards, minimum wages, audit.
EDB to reimburses at least 50% of this cost as these charges have to be paid in foreign currency.
Government can provide following facilities to the export oriented companies to obtain and maintain the required standards.
A loan facility with low interest rate to be paid in 5 years’ period.
Declare these expenses as qualified expenses for Tax rebates.
3 ) To continue the SVAT The Exporters will face a negative impact specially on their cash flow if the SVAT is removed. Many Exporters are yet to receive refunds on previous VAT claims. The removal of the SVAT will directly affect the cash flow of the exporters and foreign earnings.
4 ) Increase of Payee tax of the employees Propose to reduce the Payee tax of employees of the export sector to encourage more workers to join the Exporter sector.
Exporters are facing issues on shortage of skilled and non-skilled workers and reducing the tax will encourage more to join and that will help the exporters to increase the workforce – increase production – increase exports and play an vital role in the government’s efforts to make Sri Lanka an Export driven economy.
5 ) Low import tariffs applicable to the products already manufactured in Sri Lanka. Import tariffs applicable to the products which already manufactured in Sri Lanka and exported to be revisited to discourage imports as local manufactures are capable of catering to the demand in the Sri Lankan market competitively. This will also protect local manufactures and to control foreign currency outflow.
6 ) Taxes for investments Tax relief for the investments made to increase the production/productivity of industries preferably double the quantum of investment
7 ) Taxes for exports Double the tax relief for the increase in exports if export rebates cannot be granted due to lack of government finances
8) CEB charge for Exporters and Traders Electricity rates for the Industry were increased by 90% directly affect for the cost of production and difficult for exporters to compete in the international marketplace. Therefore, proposed to introduce separate lower electricity rates for exporters by implementing a threshold level of foreign currency earning.
9 ) Sudden Policy/Procedure Changes specially affect for Exporters Proposed to implement a proper procedure to get the inputs from related private and public sector stakeholders including the Chambers prior to amending policies that relates to Trade and Exports.
Propose to update and create awareness amount the Exporters prior to any policy changes and provide with adequate time to make necessary changes to their working methods and adopt to the changes in policy.