Islamabad, July. 13 (INP) -- The final Tax Regime (FTR) for exporters in the Federal Budget 2024-25, would not only open avenues of departmental corruption but result in harassment and inconvenience to the exporters, opined Mr. Abdul Ghafoor Malik, President, Sialkot Chamber of Commerce and Industry. Mr. Abdul Ghafoor Malik said that FTR was introduced in 1991 after a series of negotiations with the Government authorities to sensitize them to the issues faced by the SME sector of Sialkot. He said that the regime was introduced under the leadership of Mian Muhammad Nawaz Sharif, the then Prime Minister of Pakistan, to extend facilitation to the exporters and to charge them tax at a fixed rate at the time of realization of export proceeds without burdening them with maintenance of hefty records.

He said, “The regime was successful in enhancing Government revenue without incurring any substantial administrative cost. However, the regime has been withdrawn without consulting the prime stakeholders of the SME export sector. It was resolved by the participants of the Press Conference that withdrawal of the Final Tax Regime would be fatal for exporters and would go against the slogan of the Government to promote ease of doing business”.

Mr. Abdul Ghafoor Malik demanded that the Government should immediately revisit the policy regarding the withdrawal of the Final Tax Regime as it would seriously hamper the export business and exporters would be left at the mercy of the tax authorities. The participants of the press conference resolved that all efforts regarding the abolition of the Final Tax Regime for exporters would be strongly resisted as it would be against the interests of the exporters of the SME sector. He also informed that a meeting had been coordinated with the Government Officials to sensitize them on the seriousness of the issue and to request the Government to revise the decision. He hoped of a positive outcome of the meeting with the Government.

Credit: Independent News Pakistan (INP)