LAHORE: The rice exporters have urged the government to exempt the sector at least from sales tax, which is not facilitated despite being the second largest foreign exchange earner of $2.2 billion annually.
Submitting few proposals for the revival of the sector, Rice Exporters Association of Pakistan (REAP) Chairman Shafique Chaudhry said that in view of decline in rice exports from Pakistan, the State Bank of Pakistan should consider the export performance singly, instead of twice, for export refinance scheme.
He said that for the last couple of years, constant decline was being noticed in the export of rice due to low prices in the international market and lot of other factors, which caused huge losses to the rice exporters. Shafique demanded that the withholding tax of 1.5 percent be withdrawn. “The exporters should not be treated as the withholding agents for local sale,” he added.
He also demanded exemption from duties and taxes on the import of rice machinery – processing & husking plant, besides ERF rates for the rice industry may also be brought down to 3.5 percent at par with the textile sector.
The REAP chairman said that income tax was being charged on electricity bills, which was not being refunded either. “This doubles taxation on exporters; therefore, it be removed,” he demanded.
He also expressed disappointment over what he called the step-motherly treatment of the rice export industry by the government, adding the sector had been completely neglected in the federal budget 2016-17.
