KARACHI: Atif Ikram Sheikh President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has conveyed FPCCI’s quick response regarding specific provisions of the Finance Bill 2024 that may negatively impact the exporters.

In a letter to Prime Minister Mian Muhammad Shehbaz Sharif, he urged him to immediately intervene in following matters:

1- Taxation Adjustments for Exporters: The shift from a fixed 1% withholding income tax to the standard tax regime for exporters introduces complexities that may deter especially the SMEs due to increased bureaucratic engagements with the FBR.

2- Export Finance Scheme (EFS) Alterations: The proposed withdrawal of sales tax exemption on local supplies to registered exporters could destabilise the supply chain and undermine the EFS, which is pivotal for surpassing export targets.

3- New Section 25AB - Tax Fraud Penalties: The introduction of severe non-bailable penalties for suspected tax fraud raises concerns over potential misuse, leading to unwarranted harassment and deterring investment.

He said the FPCCI is committed to supporting the government’s tax objectives, broadening the tax base, and enhancing economic documentation.

We are in the process of thoroughly reviewing the budget and kindly request an opportunity for a dialogue with your office, preferably immediately after Eid-ul-Uzha, to enhance mutual trust and collaboration between the industry, FBR, and government. “Your leadership is pivotal in addressing aforementioned concerns promptly to safeguard the country’s exports. We value your continued support and anticipate a swift and favourable response.”

He expressed his gratitude for the reduction in industrial electricity tariffs by Rs. 10.69 per unit. “This decision is a testament to your dedication to fostering industrial growth and addressing the concerns of the business community.”

The FPCCI acknowledges the government’s efforts in formulating a comprehensive budget under challenging economic conditions.

Copyright Business Recorder, 2024

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