Reap Offers Easy and Convenient Tax Payment System
Published on: June 13, 2024.
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The Rice Exporters Association of Pakistan (REAP) is urging the government to implement a one-window tax system for exports in order to simplify tax payments and support exporters. REAP Chairman, Chela Ram Kewlani, emphasized the importance of a transparent and hassle-free tax payment system during a press conference at REAP House.
Kewlani stated that the business community is always willing to support the government and the country’s economy by paying taxes, but it is crucial that the tax payment system is simplified. As part of REAP’s budget proposals for the fiscal year 2024-25, they have recommended the implementation of a One Window Tax System for export-related industries. This system would allow taxes to be automatically deducted upon the arrival of export proceeds.
Additionally, Kewlani called on the State Bank of Pakistan to reduce the interest rate to single digits in order to promote economic growth. He expressed concerns that the current double-digit interest rate is hindering industrial expansion and argued that the recent 150 basis points cut in the policy rate is not sufficient. Kewlani asserted that the policy rate should be reduced to 8 percent.
During the press conference, Kewlani shared positive news about the Ministry of Commerce’s efforts and Rafique Suleman, Convener of REAP’s Committee on Kenya. As a result of their initiatives, Pakistan successfully released 1,300 rice containers that were stuck at the Mombasa port in Kenya. Furthermore, Pakistani rice has been granted zero-rated status until November 2024.
Kewlani explained that Pakistani rice exporters had sent shipments to Kenya with a duty-free deadline of April 6, 2024. Thanks to the timely intervention by the Ministry of Commerce and REAP’s committee, these shipments were smoothly released and maintained their duty-free status. This averted potential financial losses for Pakistani exporters.
The proposed one-window tax system and reduced interest rates aim to alleviate the financial burden on exporters, simplify tax compliance, and enhance the competitiveness of Pakistan’s rice industry in the global market.
Source: PkRevenue.com
