The
Hotels Association of Sri Lanka (THASL) yesterday welcomed the Governments
decision to grant export status to the tourism industry and its latest decision
to reduce and simplify taxation.
"We
commend the Government for the speedy implementation of its election pledges
and believe that tourism's new status together with the proposed tax cuts are
the right measures to boost the economy and increase investment," THASL
President Sanath Ukwatte said.
He said
tourism's recognition as an export industry is a long overdue and hugely
positive measure for which THASL has been lobbying actively for the last few
years. Eliminating NBT and the reductions to VAT in line with other export
industries will help Sri Lanka's tourism compete with regional countries and
create a highly favourable environment for business to grow. He also thanked
the Government for its efforts.
"The
proposed tax measures, when they come into force, will not only simplify the
tax structure but will promote investment and help create more jobs, not only
in tourism but for the wider economy. We urge the Government to maintain this
tax structure uninterrupted for a minimum period of five years. This will allow
businesses to plan in advance, bringing stability to the economy and boosting
growth. Policy inconsistency and overnight fluctuations in taxation has been
detrimental to planning and the business environment. Unexpected variations in
taxes is costly for business. Many businesses keep large provisions for such
fluctuations, taking money away from much needed investment and keeping prices
high for consumers," the THASL chief said.
"We are
confident that if the Government maintains their new lower and simplified tax
structure for the duration of its term, that this will boost economic growth
and increase prosperity for all Sri Lankans.
We
applaud the courage which the President, Prime Minister and the Government has
shown in taking decisive action to stimulate investment and growth. We assure
the Government of our fullest support and look forward to working together to
achieve our collective objectives," Ukwatte added
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