Rice Export Association of Pakistan (REAP) has expressed concern regarding the withdrawal of the zero-rating status of various export-oriented sectors in the Finance (Supplementary) Bill 2021, reported Business Recorder.

REAP termed the bill as a “devastating step” and requested the parliamentarians and finance ministry officials to take immediate action and intervene before the bill is passed by the National Assembly.

Chairman REAP, Ali Hussam Asghar, in his letter to the various government departments, which include Senate, National Assembly Secretariat, and Federal Board of Revenue (FBR), stated that several portions of the bill would have serious implications on the exports of rice.

He specifically pointed out that after the bill passes, the zero-rating to the exported goods of an exempted item would no more be available, which would cause serious harm to the sector. He added that withdrawal of sales tax input adjustment/refund would result in an increase in the cost of doing business in the sector, which would result in many businesses shutting down.

The chairman also highlighted that Pakistan was the fourth-largest producer of rice and in competition with countries such as India.

Ali Hussam reminded the authorities that the exports of Pakistan have already been struggling in recent years, and if any wrong decision was taken, it would backfire and result in a great loss to the economy.

He requested the authorities to review the amendments that have been recommended by the new bill to ensure export performance and growth of this segment in the larger interest of the country.

Source: Pro Pakistani