KARACHI: The Rice Exporters Association of Pakistan (REAP) has urged the government to declare rice as a separate industry and place it under zero-rating along with five major export-oriented sectors.
In a statement issued on Friday, Patron-in-Chief of REAP Abdul Rahim Janoo said that apart from textiles, rice exports were much ahead of other four export-oriented sectors. He feared that neglecting this sector would discourage rice exports and the country would lose its traditional markets.
Mr Janoo said the government would have to go for “no payment no tax” policy to ensure corruption-free export trade and encourage exporters. “There is no logic in first paying taxed and then getting refunds of the same. This results in corruption and blocks huge working capital of export trade.”
As exporters funds are held back by the Federal Board of Revenue (FBR), they had to go for bank borrowing and pay extra amount towards markup, he said.