Rice sector: 'Import of machinery to be declared zero rated in budget'

Federal Commerce Minister Engr Khurram Dastgir Khan has assured the rice exporters to address their demand of declaring import of machinery for rice sector as zero rated in the budget 2016-17. The Minister said this while addressing a dinner reception arranged in his honour by the Rice Exporters Association of Pakistan (REAP) here the other night.
"I have been your advocate in the past and will be advocating for your rights in future too. All the machinery and inputs needed by the exporters of all sectors should be zero-rated and it will be reflective in the next year's budget." Regarding setting up of a formal banking channel between Iran and Pakistan, the Minister claimed that the exporters will be listening a good news shortly. He said this issue was being negotiated with Iran after lifting of sanctions and we are very near to a breakthrough on it.
He also assured the rice exporters that all out support would be extended to them for marketing and branding of their product and now ball was in their court that they should make their place in the international market. He said 50 percent rebate to the expenses made on branding and marketing was also available for rice exporters. He promised that the mechanism of this rebate, which was a part of strategic framework announced last year, would be made clear to the rice exporters. He invited them to take full advantage of it as nobody could fetch premium price without branding and value addition.
The Minister said the exporters had been participating in the Gulfood festival in the past and they had seen the effort of the Pakistan government in shape of a big pavilion there. "This year you will see a stall of Pakistan at this important food fair in a much better position focusing on branding of the Pakistani food products," the Minister said.
He said all the commercial officers posted abroad in the year 2016 were selected purely on merit. "You will not find any relative of mine or any other minister in this batch as they are purely selected on merit," he claimed.
Khurram on the occasion also counted achievements of the present government which, according to him, include restoration of peace in Karachi, Balochistan and FATA. He said that on average 5.6 incidents of terrorisms were held daily in year 2012 which fell by 85 percent in year 2016. However, he said that peace had return to Pakistan after sacrifices of thousands of civilians, army, police and Ranger jawans.
Chairman REAP Mahmood Baqi Moulvi in his address claimed that the rice sector whose exports were about 2 billion dollars was not treated like other export sectors as textile and leather etc. He demanded to include rice export sector in zero-rated exporting sectors and exempt it from sales tax and income tax on utility bills. The Chairman said the rice exporters have been facing unprecedented challenges for years and consequently their capacity has been severely impaired. Exports, both in quantity and value terms, could not pick up pace and have stood below targets. Withdrawal of the zero-rating facility and imposition of sales tax would be detrimental to business activities. The function was also addressed by LCCI President Abdul Basit, REAP Founder Shahzad Ali Malik and its Patron in Chief Pir Nazim Hussain Shah.