📈 Apparel Exporters Welcome Efficient VAT Refund Shift

• Summary: The apparel sector reports a positive transition following the abolition of the Simplified VAT (SVAT) scheme on 1 October 2025. The new Risk-Based Refund Scheme (RBRS) has seen most qualified exporters receive refunds for October and November 2025 ahead of the expected 45-day window. • Key Developments: • Successful pilot of an API linked to the RAMIS system, enabling automated data matching and reduced manual intervention. • Strong collaboration between the IRD, Presidential Task Force, and the apparel & textiles industry. • Significant progress in digitizing the refund process to support predictable cash flows amidst high working capital costs. • Sector Focus: • Apparel: As the country’s largest export earner, timely refunds are critical for maintaining global competitiveness and financial stability. • SMEs: Efforts are ongoing to extend these faster refund benefits to small-scale and indirect exporters. • Industry Proposals: • Fast-tracking a sector-wide e-invoicing framework to ensure seamless value chain verification. • Shifting away from manual invoice-level checks (currently applied to refunds over Rs. 50 Mn) toward a strictly risk-based, low-intervention audit mechanism.