June 17, 2024 (MLN): Chela Ram Kewlani, Chairman Rice Exporters Association of Pakistan (REAP) has strongly opposed the announcement in National Budget of converting the Export trade from Final Tax Regime (FTR) to a Hybrid model as this combination shall be disastrous for export business of country.
He said that Current FTR regime is 1% turnover tax is equivalent to 30-35% tax on Profit for exporters. Now they are suggesting to convert to NTR plus 10% Super Tax with a minimum 1% paid. This means 39% tax on profit of exporters.
“This is a distracted policy would discourage exporters & investors,” he added.
Exporters making losses still will have to pay 1% on turnover and then go into NTR to explain to Tax authorities regarding their Profit & Loss.
The Income tax is on Income, why should a company pay tax if it has incurred losses, why 1%, Chela Ram added.
This must be addressed as due to increasing and high Electricity and high Finance makes our inputs high and unbearable.
They strongly demand and insist on 1% FTR regime, as this is usually equivalent to 30-35% Tax on Profits which is in line with Industry, so there is no need for extra burden please.
They complained that government did not take us On board before making such decisions which is not in favor of Export trade.
He added that they support FTR & DEMAND EASE OF DOING BUSINESS, as World is going for Ease of doing to theirs Exporters.
He warns that due to new policy, Exporters will have to face huge Loss and Exports will be collapsed and haled.
“We have no other option except to stop exports and shut down our factories,” he warned.
In this case, Rice Farmers will have to bear huge losses. Whereas, government is already in pressure due to recent wheat, cotton, sugar issues.
This statement was given jointly by Chela Ram Kewlani, Chairman, Rice Exporters Association of Pakistan (REAP), Abdul Rahim Janoo, Ex-Chairman REAP along with and Officer Bearers/Representatives of various Export Oriented Associations while addressing a Press Conference Today at Karachi Press Club.
The said Press Conference was also attended by Mr. Rafique Suleman, Ex-Chairman REAP, MC Members and large number of leading Rice Exporters along with Officer Bearers/Representatives of following Export Oriented Associations:
1. Pakistan Pharmaceutical Manufacturer Association (PPMA)
2. Pakistan Leather Garments Manufacturers and Exporters Association
3. Pakistan Sports Goods Manufacturers & Exporters Association
4. Pakistan Knitwear & Sweater Exporters Association
5. All Pakistan Fruit & Vegetable Exporters Association (PFVA)
6. All Pakistan Textile Mills Association (APTMA)
7. Pakistan Tanners Association
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Posted on: 2024-06-17T15:35:23+05:00
