Removal from fixed tax regime: Rice exporters reject govt’s proposal
Rice exporters in Karachi reject government proposal to shift from fixed to normal tax regime. They fear increased bureaucracy and corruption risks, urging PM Shahbaz Sharif to maintain stable tax policies. Exporters argue that stable tax rules are crucial for growth, investment, and maintaining competitiveness in global markets. They emphasize the need for supportive tax environments to sustain foreign exchange earnings and economic stability, urging the government to prioritize business-friendly policies.
KARACHI: Rice exporters have rejected the federal government’s proposal to remove the exporters from fixed tax regime to normal tax regime.
In a letter to Prime Minister Shahbaz Sharif, Rafique Suleman EC member FPCCI and Chairman East Africa Committee REAP has highlighted anomaly of tax for the exporters.
He said that exporters particularly rice exporters have deep concern regarding the recent proposal to remove all exporters from the fixed tax regime and transition them to the normal tax regime.
“This move, under the guise of adhering to horizontal equity rules, poses significant challenges to the business community and threatens to undermine the growth of our export sector”, he added.
He mentioned that normal tax regime for exporters will increase the bureaucratic hurdles and corruption risks.
With this move exporters will be more susceptible to undue influence from income tax officers, potentially leading to unethical practices and financial burdens, he added.
Suleman said that this will also have adverse impact on business operations the exporters.
“The shift away from a fixed tax regime creates uncertainty and instability for businesses and exporters, who play a crucial role in earning foreign exchange for the country, need a predictable and supportive tax environment to thrive”, he added.
Former chairman REAP said that the proposed change disrupts exports growth and could hinder business growth and competitiveness in the global market.
He said that exporters are instrumental in driving economic growth and generating foreign exchange. Unfavourable tax policies could discourage investment and expansion within this sector, ultimately affecting the country’s export performance and economic health, he said.
With these facts, he has urged Prime Minister to reject this proposal and advocate for tax policies that foster a conducive business environment. The government should focus on implementing business-friendly policies that encourage growth, investment, and export performance, he added.
According to letter, maintaining a fixed tax regime for exporters is essential to ensure stability, reduce bureaucratic challenges, and promote a fair and transparent tax system. By rejecting this proposal, the government can demonstrate its commitment to supporting the business community and fostering economic prosperity, Suleman said.
“We (exporters) hoped that he you will consider our concerns and take necessary action to safeguard the interests of exporters and the broader business community,” he concluded.
Source Link : https://www.brecorder.com/news/40308441/removal-from-fixed-tax-regime-rice-exporters-reject-govts-proposal
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