KARACHI: The value-added textile exporters have rejected the Reforms & Revenue Mobilization Commission’s (RRMC’s) report submitted to Finance Minister by its Chairman Ashfaq Tola terming it “anti-export drive” and “unwise budgetary recommendations and policy measures” which will ruin the hard efforts of exporters to enhance exports and to earn valuable foreign exchange.
The RRMC has recommended to change the existing final tax regime of exporters to minimum tax regime and to impose additional tax on foreign exchange income of exporters which are imprudent and harsh being recommended without consultation of exporters and real stakeholders. Export is a 100 percent documented business and its dealings/ transactions are done in real-time.
FTR regime was introduced and implemented in the past to support exports to address trade balance which is yet to be achieved. In absence of trade balance applying normal tax regime to exporters will discourage exports and will be futile exercise.
The RRMC chairman is a consultant, who wore various hats in successive government, knows nothing about the export. He holds a complaisant personality whose recommendations to the government are always anti-export and to benefit some particular business circles only.
In these most difficult times, should the Government depend upon consultants/ advisors or the real stakeholders? Whether present alarming economic state of affairs allows the government to experiment and adventure with exports on the advice of consultants/advisors? Should not the Government take on board the real stakeholders respecting their fundamental rights? What service the so-called tax consultants have done to the nation to whom the government accord preference over the exporters and real stakeholders businesspersons? While the date of budget has been announced, why the prime minister, finance minister and other concerned in the government have not invited textile exporters to hear their grievances and sought suggestion in the upcoming budget and what are the motives behind such neglect?
The exporters have also noted with deep concern that there are few persons who are big businessmen regularly meet the government who advise and suggest about promotion and business development of SMEs.
Surprisingly, the national export is not increasing, its revenue is not increasing but debts and liabilities are increasing, nonetheless, the businesses and exports of those few blue-eyed businessmen have greatly flourished, however, the SMEs are struggling for their survival having no representation and no say to the government.
This broad discrimination and bigotry has shaken the confidence of small and medium textile exporters. During the period, 918 business entities engaged in export have closed and shutdown their export activities.
Textile exporters are of the view that whenever the government has accorded importance to the textile exports and started implementation on the Textile Policy, the textile exports have enhanced. Unfortunately, from the announcement of first Textile Policy in 2014-2019 till the existing Textile Policy 2020-2025, not a single policy was implement completely.
Provided, 100 percent implementation was ensure, the textile export would have enhanced from 25 to 40 percent in a year. The government should also take notice that why, despite of availing GSP Plus status in EU, Pakistani textile export has not achieved milestone increase.
The main reason is that the cost of manufacturing/ export production has never been controlled in real sense and remained upward fluctuated making exporters unviable and uncompetitive to compete with regional competitors. Exporters advise the government not to experiment with exports on unfair advisory of consultants/advisors.
Exporters have expressed their deep concern that whenever the export industry comes in full pace of progress and takes-off to achieve horizons of export enhancement surpassing previous highest benchmarks, something highly adverse happens and all the hard efforts of exporters to earn valuable foreign exchange for Pakistan are confronted and sabotaged.
Copyright Business Recorder, 2023
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