REAP & EXPORT ASSOCIATIONS STRONGLY OPPOSES NATIONAL BUDGET FOR ITS ADVERSE IMPACT ON EXPORTS – CHELA RAM KEWLANI, CHAIRMAN REAP This statement was given jointly by Mr. Chela Ram Kewlani, Chairman, Rice Exporters Association of Pakistan (REAP), Mr. Abdul Rahim Janoo, Ex-Chairman REAP along with and Officer Bearers/Representatives of various Export Oriented Association while addressing a Press Conference Today at Karachi Press Club. The said Press Conference was also attended by Mr. Rafique Suleman, Ex-Chairman REAP, MC Members and large number of leading Rice Exporters along with Officer Bearers/Representatives of following Export Oriented Associations: 1. Pakistan Pharmaceutical Manufacturer Association (PPMA) 2. Pakistan Leather Garments Manufacturers and Exporters Association 3. Pakistan Sports Goods Manufacturers & Exporters Association 4. Pakistan Knitwear & Sweater Exporters Association 5. All Pakistan Fruit & Vegetable Exporters Association (PFVA) 6. All Pakistan Textile Mills Association (APTMA) 7. Pakistan Tanners Association Chela Ram Kewlani, Chairman REAP strongly opposes the recent announcement in National Budget regarding convert of Export trade from Final Tax Regime (FTR) to a Hybrid model i.e. “National Tax Regime (NTR) Coupled with Minimum Tax Regime (MTR)”, as this combination shall be disastrous for export business of country. The Government of Pakistan is begging to Foreign institutions for Lending Foreign Exchange whereas the much earned foreign exchange export sector is being pushed to closure. He said that Current FTR regime is 1% turnover tax is equivalent to 30-35% tax on Profit for exporters. Now they are suggesting to convert to NTR plus 10% Super Tax with minimum 1% paid. This means 39% tax on profit of exporters. This will create disastrous impact on export trade, as in this case FBR Officials may audit the books of accounts of exporters and may assess the profit / loss of exporters, which will open the doors of corruption and kickbacks as well as involvements and harassments of FBR Officials. The most Corrupt / Controversial institution (FBR) that requires revamping through HR Cutting & Digitalization is now being extended powers to sneak into Exporters Premises through Audits. Such measure will be futile and would not add revenue to National Exchequer rather to the deep pockets of Slack / Corrupt Bureaucrats stationed at FBR. This is a distracted policy & would discourage exporters & investors. Exporters making losses still will have to pay 1% on turnover and then go into NTR to explain to Tax authorities regarding their Profit & Loss. The Income tax is on Income, why should a company pay tax if it has incurred losses, why 1%, Chela Ram added. This must be addressed as due to increasing and high Electricity and high Finance makes our inputs high and unbearable. In addition, EFS is not available to Rice exporters. Do you wish to kill the Export Industry once for all? He asked. They strongly demand and insist on 1% FTR regime, as this is usually equivalent to 30-35% Tax on Profits which is in line with Industry, so there is no need for extra burden please. They complained that Govt. did not take us On board before making such decisions which is not in favor of Export trade. He added that they support FTR & DEMAND EASE OF DOING BUSINESS, as World is going for Ease of doing to theirs Exporters. He warns that due to new policy, Exporters will have to face huge Loss and Exports will be collapsed and haled. We have no other option except to stop exports and shut down our factories. In this case, Rice Farmers will have to bear huge losses. Whereas, Govt. is already in pressure due to recent wheat, cotton, sugar issues. In this case rice farmers will see huge losses if rice export hurts.