Zero rating facility for export sector to remain intact

June 12, 2019 (MLN): Adviser to Prime Minister on Finance, Dr. Abdul Hafez Sheikh dismissed an impression that the government has imposed taxes on export items in federal budget, explaining that the duties would not be imposed on exports of products.

Addressing the post-budget press conference earlier today, Hafez Sheikh flanked with Federal Minister for Planning, Development and Reform Khusro Bakhtiar, Minister for Power Omar Ayub Khan, Minister of State for Revenue Hammad Azhar, and Chairman Federal Board of Revenue (FBR) Syed Shabbar Zaidi, said that the zero-rating status of export sectors would remain intact;  however the exporters who were selling their commodities in local market would be taxed.

He informed that under present scenario, the exporters are earning much more by selling their goods in local markets, than they are paying taxes on.

“This is unacceptable, they have a right to do business in the country but they must pay their taxes accordingly” he added.

The advisor said that many measures had been announced in the budget to encourage the local industries and the exporters.

“The impression that changes had been introduced on exports sides had no reality, while the fact is that we have announced various measures for the exporters” the advisor said.