KARACHI: The chief of Rice Exporters Association of Pakistan (REAP) has criticised the government over a budget proposal to convert export trade from Final Tax Regime (FTR) to a hybrid model of National Tax Regime (NTR) and Minimum Tax Regime (MTR) as this combination would prove disastrous for export business.

The government seems to be pleading with international institutions to lend foreign exchange, but at the same time it is pushing the export sector to the brink of closure, Chela Ram Kewlani told a press conference at the Karachi Press Club (KPC) on Saturday.

The government has proposed a shift from one per cent turnover-based FTR to a standard taxation at 29 per cent of taxable profit. It has also suggested NTR plus 10pc Super Tax with minimum one per cent paid.

This 39pc tax on the profit of exporters would create a disastrous impact on export trade. He said it was “regrettable that FBR has been empowered” to audit the exporters’ books of accounts and to assess their profits and losses. This would encourage corruption and harassment, Mr Kewlani said.

Published in Dawn, June 16th, 2024