LAHORE: The rice exporters have urged the government to announce the industry zero-rated sales tax status as exporters are facing liquidity crunch in the face of pending tax refund claims.
Rice Exporters Association of Pakistan (REAP) Chairman Muhammad Shafique, in a statement, said that the association’s members are terming the liquidity crunch a major stumbling block in the way of improving exports, as huge amounts are still stuck in refund claims with the Federal Board of Revenue (FBR), squeezing finances and causing cash-flow problems.
He praised the restoration of zero-rated tax regime by the prime minister for five sectors, including textile, leather, carpet, sports goods and surgical goods, and called for inclusion of the rice exporters in the list.
Shafique said that the rice exporters contribute a major share to the country’s export earnings and are providing direct and indirect employment to millions, adding, “Rice is the second largest export commodity, but despite earning $2 billion annually, we are not being given benefits while exporters of other commodities are facilitated.”
The association has already written letters to the finance minister and commerce minister, pressing them to count the sector among zero-rated exporting industries and exempt the rice exporters from sales tax and income tax on utility services.
