REAP demands zero-rated status for rice exports

By | February 27, 2016

Rice Exporters Association of Pakistan (REAP) requesting zero rated status for Rice has urged Mian Muhammad Nawaz Sharif Prime Minister of Pakistan to declare rice exports as industry. Abdul Rahim Janoo Chief Patron and Noman Ahmed Shaikh acting Chairman REAP has said that apart from textile, rice exports are much ahead of other four sectors. Negligence of rice sector will discourage rice exports and we will loose our established markets as well as it will dishearten rice exporters, they added.

“If government’s intentions are good then “No Payment No Tax” policy will curb corruption and will release many staff members of FBR to do other jobs. The working capital of exporters gets blocked and refunds are pending since many years, of which industry has to borrow loans to run their units or shut down”, they said.

Noman Ahmed Shaikh urged that for one tax to be collected through banks at the time of negotiating documents or on receipt of payments. This will increase Government revenue and eliminate corruption and calculation formula is very easy, add all Federal and Provincial taxes like EOBI, Social Security, Market Committee and divide by total export value, if it comes 0.05% or 0.10 % put it along with the withholding tax and save exporters from collection mafia, he added.

“It will give peace of mind to exporters and exports will increase and once export increases the revenue increases”, he said. He also requested Prime Minister to re-activate Federal Export Board and must head it for meeting on every three months. In order to enhance trade with Iran, he suggested that delegations to be sent immediately to Iran to re-capture our lost markets and it is evident that around 85 percent countries world-wide that their neighbours are their largest trading partners due to the saving in freight cost.