Daily Times

The value-added textile exporters have rejected the proposed shift from one percent turnover-based Final Tax Regime (FTR) to the standard taxation at 29 percent of taxable profit, proving to be disastrous for the exports. Pakistan Hosiery Manufacturers & Exporters Association (PHMA), in a hurriedly called meeting, held here today, observed that this proposal to remove exports from FTR must be dropped from the Finance Bill 2024 to prevent further deterioration of trade deficit and resulting pressure on foreign exchange reserves. “We are in state of shock on the adverse announcements in the Federal Budget 2024-2025 against exports which will sabotage the hard decades-long efforts of exporters to earn valuable foreign exchange for the country and to provide highest employment.” Besides PHMA North Zone senior vice chairman Amanullah Khan, M. I. Khurram of Comfort Knitwear and Sheikh Zafar Mahmood of Combined Fabrics, a large number of knitwear industry representatives attended the meeting to review the anomalies of the new budget 2024-25. PHMA North Zone SVC Amanullah Khan observed that historically, the FTR has offered transparent mechanism for taxing export proceeds electronically irrespective of profit or loss on realization of their export proceeds. He said that this imprudent tax measure has been proposed not with an intention to enhance revenue but to open up the doors of corruption and harassment in the hands of FBR.