Sri Lanka tourism industry in an uproar over shift to BTT from VAT (taxes)

  Sri Lanka’s inbound tourism operators on Monday joined growing concern over Finance Minister Ravi Karunanayake’s proposal to revert to the old Business Turnover Tax, discontinued in 1998, from the current Value Added Tax (VAT). The Sri Lanka Association of Inbound Tour Operators (SLAITO) sent letters to the Government saying the proposal will kill the sector and force double taxation, industry officials said. On Saturday, the Tourist Hotels Association of Sri Lanka warned that the proposed new tax structure to be announced in the 2016 national budget to be presented to parliament on Friday November 20 will badly impact the industry, hurt revenues and reverse development of new hotels. The association says the proposal is detrimental to the industry. The industry pays a VAT of 11 per cent while BTT could result in the industry paying double that – between 20 to 22 per cent, the officials said. – ENDS -