CMI-KPMG evening discussion highlights:
View(s):Simplifying tax procedures and knowledge sharing can improve trade opportunities
A discussion on tax issues pertaining to the supply chain function organized by the Chartered Management Institute, UK’s Sri Lanka Branch together with KPMG as the knowledge partner was held at the Galadari Hotel on 28th January 2013. The discussion commenced with a welcome address by Rohitha Mendis, President of CMI’s Sri Lanka branch where he mentioned that The Chartered Management Institute (“CMI”) is the only chartered body in the UK dedicated to promoting the highest standards in management and leadership excellence. CMI has more than 90,000 member’s majority in UK with several overseas branches including Sri Lanka. Sri Lanka branch has nearly 150 members. Rohitha went on to state that CMI organises similar discussions in keeping with the CMI motto to create BETTER LED AND BETTER MANAGED organisations through Continutous Professional and Personal development.
Over 125 delegates representing companies in freight forwarding, shipping, cargo handling and similar industries attended the discussion.
Suresh Perera, Principal Tax and Regulatory of KPMG, the moderator of the session commenced the discussion by pointing out that according to the Budget Speech of 2011; Sri Lanka is to be promoted as a shipping and logistic hub in the region. Perera added that in order to attain this objective it is important that tax hurdles involved in the supply chain should be overcome facilitating an environment which is supportive for the smooth progression of industry.
Dilani Katipearachchi, Vice President and Head of Tax of the Aitken Spence Group, discussed the VAT implications associated with logistics and warehouse operations. The discussion revolved around the concept of international transportation. It was also pointed out that there could be more clarity with regard to the concept of services being consumed and utilized outside Sri Lanka with regard to service provision by foreign currency earners. Mr. K. Dharmasena, Commissioner of the Department of Inland Revenue, expressed his views with regard to the applicable tax law framework for international transportation.
The panel responds to a question raised the audience
Responding, to issues raised by Devika Weerasinghe, Chief Financial Officer of the Transportation Cluster of the John Keells Group, Mr. K. Dharmasena expressed his view that the Department has clarified certain tax issues relating to tour operators and agents.
Yishani Abeysuriya, Chief Financial Officer of DHL Global Forwarding, Mohan S. Mohandas, Chairman of the Sri Lanka Freight Forwarders Association and Sriyamal Gamage, Deputy Finance Director of Hayleys Advantis discussed the tax issues faced by companies engaged in Freight Forwarding operations.
Ralph Anandappa, Chairman of the Ceylon Association of Ships’ Agents, discussed the issue with regard to the applicability of 5% Ports and Airport Development Levy (PAL) on Bunkering Services. The Panelists pointed out that the PAL on Bunkering services could impact the competitiveness of businesses and may minimize the potential for foreign income that could be earned from bunkering services.
Dinesh De Silva, Chairman of the Sri Lanka Shippers Council discussed the need for reducing grey areas and uncertainties with regard to tax issues and the importance of simplifying the tax system. He also pointed out that quick remedies to issues can help the in the growth and effective promotion of the industry.
R.P.L Weerasinghe, Former Commissioner General of Inland Revenue who was also a panelist made his observation with regard to various issues that were discussed.
Varuna Ratnaweera of the Events committee and Vice President of CMI Sri Lanka, in his concluding remarks mentioned that CMI and KPMG will continue to collaborate on knowledge sharing initiatives bringing together industry professionals and facilitating discussions on topics which are of paramount importance to business managers.
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