The Joint Apparel Association Forum (JAAF) welcomes the recent cabinet approval for the deferment of the Simplified Value-Added Tax (SVAT) scheme, set to now take effect from April 1st, 2025. JAAF is particularly appreciative of the decision to ensure that a “strong tax repaying mechanism” is in place before proceeding with the removal of SVAT. This decision reflects the dedicated efforts of various stakeholders to protect the industry, for which JAAF is appreciative.
This deferment comes at a critical time for apparel exporters who have been grappling with declining exports and therefore, risk of cash flow disruption if SVAT was removed without a viable refund system being in place.
Exporters pointed out that as an appropriate measure towards repealing the SVAT system, a step-by-step approach is required until a strong tax repaying mechanism is established.
The statement from JAAF said, “The deferment offers a lifeline to our sector, ensuring a smoother transition towards a revamped tax framework. We remain committed to working collaboratively with all stakeholders to ensure the industry’s continued growth and prosperity.”
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