Sri Lanka, Oct. 1 -- The Free Trade Zone Manufacturers' Association (FTZMA), the National Chamber of Commerce of Sri Lanka (NCCSL) and the Sri Lanka Chamber of Small and Medium Industries have filed a writ application before the Court of Appeal challenging the decision by the Inland Revenue Department (IRD) to commence collecting Value Added Tax (VAT) from today (October 1) without first operationalising the legally mandated automated refund mechanism.

The Petitioners-representing exporters, deemed exporters, sub-contractors to exporters, service providers in the export supply chain, SMEs, and the broader business community-state that collecting VAT from export-related businesses without a proper functioning refund system, and without pu...