Inbound tour operators welcome VAT exemption

Friday, 24 April 2020 00:00 - - {{hitsCtrl.values.hits}}

Says it gives them level playing field with rest of industry

The Sri Lanka Association of Inbound Tour Operators (SLAITO) yesterday hailed the decision by Cabinet to exempt them from the 8% Value Added Tax (VAT) with effect from 1 April.

“We are extremely happy with the decision by the Cabinet. This will now ensure an even playing field across the tourism industry,” SLAITO President Mahen Kariyawasam told Daily FT.

Although SLAITO had requested the authorities to consider the VAT exemption with retrospective effect of 1 January 2020, the Government had only made it effective from 1 April.

“As the VAT exemption for inbound tour operators will come into effect from this month, there will be a loss for many companies during the Q1,” he added.

However, the hoteliers received the VAT exemption in retrospective effect and therefore it was 8% cheaper for them.

“With the new decision, going forward the industry will enjoy a level playing field,” Kariyawasam added.