ISLAMABAD: Pakistani rice traders on Friday warned the government of a possible reduction in their exports to $2 billion, against the ambitious $5 billion target, blaming the new tax regime expected to make them pay a larger share of their earnings than in the past.
The country’s rice exports to Saudi Arabia, the United Arab Emirates, China, Malaysia and other countries reached $3.9 billion in the last fiscal year, a noticeable improvement compared to the previous year’s $2.1 billion, reflecting an upward trajectory.
For the current fiscal year, Pakistani rice traders have been eyeing $5 billion. However, they say this might not happen due to the government’s decision to replace the Final Tax Regime with the Hybrid Tax Regime, which would double the tax rates and force exporters to file returns each month.
The Final Tax Regime refers to a system where specific sources of income, such as dividends, have final tax deductions made at the source, meaning no further tax is payable. In contrast, the Hybrid Tax Regime applies to businesses or individuals with multiple income streams, combining final taxed income with additional taxable income, requiring more meticulous filing of returns and higher overall tax rates.
“This new tax regime will leave us uncompetitive in the international market,” Chela Ram Kewlani, Chairman Rice Exporters Association of Pakistan, told Arab News. “This will automatically result in a drop in our rice exports to $2 billion as we have already been doing business at record high markup rates and electricity costs.”
He said the new tax regime would open the door for the Federal Board of Revenue (FBR), the country’s tax collection body, to audit their business, resulting in “corruption and harassment” of rice exporters.
“There is a clear contradiction in the government’s statements and actions,” he said. “They want to boost the exports, but at the same time they want to burden the sector with heavy taxes.”
Kewlani said, besides the new tax regime, the government would levy 10 percent super tax if the exports of a trader went beyond Rs4 billion ($14.4 million).
He informed the exporters held a meeting with Federal Minister for Finance Muhammad Aurangzeb last week to discuss the issue, though it did not yield their desired results.
“You are aware of the economic situation, so the government has no option but to levy additional taxes on the rice exports,” he said while quoting the finance minister.
Muhammad Jawed Hanif, Chairman of the National Assembly’s Standing Committee on Commerce, said he was aware of the challenges posed by additional taxes, adding the committee would discuss the matter in its next meeting.
“We have a meeting on July 24 wherein we will discuss these rice export issues,” he told Arab News.
“All issues related to exports will be on my priority list as the country badly needs foreign exchange through increased exports of our products,” he added.
Pakistani rice traders warn government of drop in exports due to additional taxes
https://arab.news/6bzf2
Pakistani rice traders warn government of drop in exports due to additional taxes
- Local traders of the commodity set $5 billion of export target before government introduced new tax regime
- National Assembly Standing Committee on Commerce will take up the issue in its forthcoming meeting next week
Pakistan says it is targeting militant infrastructure in Afghanistan as Kabul threatens to hit Islamabad
- Ata Tarar says Pakistan is carrying out ‘precise intelligence-based operations’ to avoid civilian casualties
- Afghan defense minister says the underlying dispute between the two sides is over the ‘Durand Line’ border
ISLAMABAD: Pakistan said on Saturday it was conducting intelligence-based operations against militant infrastructure inside Afghanistan while attempting to avoid civilian casualties, as a senior Afghan Taliban official warned Kabul could retaliate by targeting Islamabad if Pakistani forces struck the Afghan capital.
The escalating rhetoric comes as cross-border fighting between the two neighbors intensifies following clashes that began last month when Afghan forces launched attacks on Pakistani military installations along the frontier. Kabul said the assault was retaliation for Pakistani airstrikes targeting what Islamabad called militant camps inside Afghanistan.
Pakistan’s defense minister Khawaja Muhammad Asif said last week the situation had effectively become “open war” between the two countries.
“Pakistan is only targeting terrorist infrastructures and support system with precise intelligence based operations ensuring no collateral damage takes place,” Pakistan’s Information Minister Ataullah Tarar said in a statement.
He challenged the recent claims made by an Afghan defense ministry spokesperson earlier this week who said his country was making significant battlefield gains against Pakistan including the killing of 109 soldiers and the capture or destruction of 14 military posts in large scale attacks.
“These so called attacks by Afghan Taliban in coordination with FAK [Fitna Al Khawarij] Terrorists once again confirm the nexus of Afghan Taliban regime and multiple terrorist organizations operating from within their territory,” Tarar continued. “All such attempts are responded to, immediately and effectively with severe retributive punishment that is swift, precise and effective.”
“The imaginary numbers being floated by Afghan Taliban regime are however not worth any serious comment,” he added.
Tarar said Pakistan’s military campaign — described as Operation Ghazb Lil Haq — had inflicted heavy losses on Afghan Taliban forces.
According to figures shared by the minister, 527 Taliban fighters had been killed and more than 755 injured since the clashes began, while 237 check posts were destroyed and 38 captured and destroyed. He said 205 tanks, armored vehicles and artillery guns were destroyed and 62 locations across Afghanistan had been targeted by air strikes.
Arab News could not independently verify the claims made by either side.
CIVILIAN CASUALTIES
Earlier this week, the United Nations raised concern over the toll of the escalating conflict on civilians.
UN human rights chief Volker Turk said on Friday that 56 Afghan civilians — nearly half of them children — had been killed since hostilities between Pakistan and Afghanistan intensified.
However, Tarar questioned the UN findings, saying its assertions appeared to rely heavily on information provided by Taliban authorities and did not adequately reflect independently verified intelligence.
“Pakistan categorically reiterates that all counter-terrorism operations conducted by its security forces are carried out with the highest degree of precision, professionalism, and responsibility,” he said.
Islamabad has long accused the Taliban government of allowing militant groups, including the Tehreek-e-Taliban Pakistan (TTP), to operate from Afghan soil, a charge Kabul denies.
“Operations are meticulously planned so that civilian areas remain completely safe,” the minister said. “The locations targeted are remote terrorist hideouts and facilities far removed from populated zones, including sensitive areas such as Kabul’s Green Zone.”
AFGHAN WARNING
Meanwhile, Afghanistan’s Defense Minister Mullah Yaqoob issued a warning to Pakistan in remarks circulated by Afghan broadcaster TOLOnews.
“If Kabul lacks peace, there will be no peace in Islamabad. If Kabul is attacked, Islamabad will be attacked,” Yaqoob said in a promotional clip of an interview shared on social media.
Yaqoob rejected Pakistan’s justification that the presence of the TTP in Afghanistan warranted military action and suggested the underlying dispute was over the contested “Durand Line” border between the two countries.
So far, there has been no official response from Pakistan to Yaqoob’s remarks.
