FAISALABAD: Value added textile sector has out rightly rejected the proposed amendments in Final Tax Regime (FTR) and Normal Tax Regime (NTR) apprehending that these would not only allow FBR to harass the exporters but also open the floodgates of corruption in addition to multiplying problems for the export community, said Chaudhary Salamat Ali Group Leader Pakistan Hosiery Manufacturers & Exporters Association (PHMA).
Addressing a press conference, he said that earlier exporters were paying 1% final income tax while now the government has proposed to convert it into a minimum tax regime. “Under this proposal, the exporters would have to submit documents for their income and expenditures,” he said and added that now they would also fall under the NTR which would create multiple problems for them.
He said that under FTR hundred percent income tax is deducted on their sale electronically. He expressed concern over the insufficient cut in the markup rate and demanded that it should be brought into the single digit as no profitable business could be carried out with exceptionally high markup rate.
Dr Khurram Tariq, President Faisalabad Chamber of Commerce & Industry (FCCI) said that it is the first budget in the history of Pakistan in which recommendations of the business community have not been included. He said that he had consulted seven committees formed for the budget formulation that flatly refused to consider their genuine proposals and replied that they were only looking after the interest of their own companies.
He termed all proposals of the budget as anti-businesses and said that the government is pushing the system towards injustice. He said that due to the policy measures 17,000 leading businessmen have already shifted to Dubai while many more are in transit.
He said that the government should curtail its expenditures instead of adding burden on the current taxpayers. He also criticized the IMF and said that the government is getting loans to meet its own requirements instead of spending the same on public welfare.
He further said that the government has bitterly failed to pay due refunds of Rs38 billion to exporters. “It has only allocated Rs10 billion for this purpose in the upcoming budget while Rs28 billion are still laying pending,” he said and added that these stuck up loans have created liquidity problems for the exporters.
Syed Nahid Abbas, Central Chairman PHMA lamented that neither finance minister nor chairman FBR or commerce minister have consulted them on the federal budget for the year 2024-25.
He said that the government is always exploiting the value added textile sector which was earning precious foreign exchange for the country in addition to providing jobs to millions of industrial workers.
Rana Altaf former Senior Vice Chairman PHMA said that apparently the government has decided to add burden on the existing taxpayers instead of broadening the tax base. He said that the government and FBR have failed to broaden the tax net.
Syed Zia Alamdar Hussain, Javed Aslam, Haji Muhammad Saleem, Hafiz Rashid Mahmood, ShaheenTabassum, Mian Asif Iqbal and other members were also present during this press conference.
Copyright Business Recorder, 2024
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