KARACHI: The value-added textile exporters on Monday dismissed the proposed “imposition” of Final Tax and Normal Tax Regimes in the federal budget 2024-25, terming it “counterproductive”. Members of the Value-Added Textile Exporters Forum told a news conference at PHMA House that the move will create “unnecessary hassle” with involvement of FBR officials, which may open gates for corruption. Presently, the 1 percent tax deduction under FTR is electronically, without human intervention, Muhammad Jawed Bilwani, Chief Coordinator, Value-Added Textile Associations Forum told the media.

High taxation cannibalizing juices export potential “As against the existing final income tax on exporters, it has been proposed that from the next fiscal year, the 1 percent rate should be treated as minimum and the exporters will have to submit documents to justify their income and expenditures,” he said. Presently, he said, under FTR, Income Tax is directly deducted at source, electronically, when remittances are received on 100 percent sales proceeds irrespective of profit or loss. “It is a daylight fact that corruption is rampant in FBR and recent ‘speed-money case’ in LTU Lahore has unearthed it with evidence where the FBR officials have openly expressed their animosity with each other to get their illicit shares,” he said.

Jawed Bilwani and other exporters urged the government to refrain from adventuring with export sector and continue the Final Tax Regime for Exporte.