PESHAWAR: All Pakhtunkhwa and Fata Commercial Exporters Association on Sunday demanded immediate withdrawal of the levy of 1.5 per cent withholding tax (WHT) on purchasing profit margin in order to promote the export of rice to Afghanistan.

Talking to mediapersons here on Sunday, the association’s president Abdul Rauf Shah claimed that imposition of the tax had resulted in decline of rice export to the tune of $1 billion, demanding it should be withdrawn forthwith.

He said that the rising import of rice by Afghanistan from Tajikistan and India via Chahbahar and Bandar Abbas ports was an ample proof of the negative effect of the levy of the tax.

The association’s chief said that due to non-recovery of the said tax, the Federal Board of Revenue had issued notices to over 30 exporters and their bank accounts had also been frozen.

He said that if the government wanted increase in export of rice, it should provide one-window facility to the exporters. He said that exporters could not provide the purchase letter, adding they could not meet those things which were not mentioned in the goods declaration.

Mr Shah said that they were ready for the clearance of their export consignments through We BOC system, but added that provision of facilities, including DSL service and electricity, was the responsibility of the government. He said that these problems existed only at the Torkham and Kharlachi crossing points.

He said that the Constitution gave special preference to trade with Afghanistan and keeping it in view the government should simplify procedures of bilateral trade to promote employment opportunities in the area. He said that blocked bank accounts of the exporters should be unfrozen with immediate effect.

Mr Shah made it clear that any tax, which was not collected during the consignment, would not be paid. He said that despite zero-rated tax they were paying one per cent income tax and 0.25 per cent Federal Development Surcharge.

Published in Dawn, November 6th, 2017