Rice Exporters Oppose Hybrid Taxation Scheme
Published on: June 16, 2024.
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KARACHI: The head of the Rice Exporters Association of Pakistan (REAP) has expressed dissatisfaction with the government’s budget proposal to change the export trade from Final Tax Regime (FTR) to a hybrid model of National Tax Regime (NTR) and Minimum Tax Regime (MTR). According to Chela Ram Kewlani, this proposed change would have devastating consequences for the export business.
Mr. Kewlani criticized the government for seeking foreign exchange assistance from international institutions while simultaneously pushing the export sector towards closure. He made these remarks during a press conference at the Karachi Press Club (KPC).
The proposed shift entails a transition from the existing one percent turnover-based FTR to a standard taxation at 29 percent of taxable profit. Additionally, the government has suggested implementing NTR along with a 10 percent Super Tax, with a minimum payment of one percent.
According to Mr. Kewlani, imposing a 39 percent tax on exporters’ profits would have a disastrous impact on the export trade. He expressed concern over the fact that the Federal Board of Revenue (FBR) would have the power to audit exporters’ financial records and assess their profits and losses. This, in his opinion, would only encourage corruption and harassment.
It is important for the government to consider the potential consequences of such a tax regime change on the export sector, which plays a crucial role in Pakistan’s economy and foreign exchange earnings.
Source(Dawn): https://www.dawn.com.
