Reap Suggests Single-Source Tax System for Exporters
Published on: June 12, 2024.
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Rice Exporters Association of Pakistan Proposes One Window Tax System to Facilitate Exporters
KARACHI – The Rice Exporters Association of Pakistan (REAP) has put forward a proposal for a One Window Tax System to streamline the process of tax payments and support exporters. The aim of this system is to create a hassle-free and transparent tax payment system that will enable exporters and industrialists to pay their taxes without fear.
At a recent press conference held at REAP House, Chairman Chela Ram Kewlani emphasized the need for a simplified tax payment system. He stated that the business community is always ready to contribute to the government and the country’s economy by paying taxes, but it is important to ease the tax paying process.
Simplifying tax payments for export-related industries
In its budget proposals to the federal government, REAP suggested the implementation of a One Window Tax System specifically for export-related industries. This system would streamline the tax collection process by deducting taxes at the time of export proceeds’ arrival.
In addition to tax reforms, Chairman Ram also called on the State Bank of Pakistan to lower the interest rates. High double-digit interest rates have negatively impacted industrial growth, and he believes that a reduction in the policy rate to 8 percent would greatly support economic growth.
Successful resolution of rice container issue in Kenya
During the press conference, Chairman Ram shared that, with the efforts of the Ministry of Commerce and Rafique Suleman Convener, REAP’s Committee on Kenya, Pakistan has successfully resolved the issue of 1300 rice containers stuck at the Mombassa port in Kenya. Additionally, Pakistan managed to secure zero-rated status for rice exports to Kenya until November 2024.
He further revealed that Pakistani rice exporters had already sent a shipment of rice to Kenya, with the deadline for duty-free rice being April 6th, 2024.
Streamlining tax payments and supporting economic growth
The proposal for a One Window Tax System put forth by REAP aims to simplify the tax payment process for exporters and industrialists. This system would ensure transparent tax payments and alleviate any concerns related to tax payments.
Chairman Ram emphasized that the business community is eager to support the government and contribute to the country’s economy through tax payments. However, it is vital to create an environment that facilitates tax payments and enables exporters and industrialists to fulfill their obligations easily.
Additionally, he called for a reduction in the policy rate to 8 percent to support economic growth. The high double-digit interest rates have negatively impacted industrial growth, and a lower policy rate would provide a much-needed boost to the economy.
Successful resolution of the rice container issue in Kenya highlights the government’s efforts to support the export industry. By securing zero-rated status for rice exports, Pakistan has removed barriers and created opportunities for exporters to expand their reach.
In conclusion, the One Window Tax System proposed by REAP and the successful resolution of the rice container issue in Kenya demonstrate the government’s commitment to easing the tax payment process and supporting the export industry. These initiatives will not only benefit the exporters and industrialists but also contribute to the overall economic growth of the country.
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