PCMEA calls for maintaining previously-functional Final Tax Regime

LAHORE    -    In a hurriedly called urgent meeting, the Pakistan Carpet Manufacturers and Exporters Association (PCMEA) has rejected the proposed imposition of new Final Tax and Normal Tax Regimes in the federal budget 2024-25. PCMEA urged upon government to maintain old-practiced Final and Normal Tax regimes with maintaining income tax SRO 115/4 for export to keep carpet industry unhurt. PCMEA said that new proposed tax tweaks would create “unnecessary hassle” due to increased involvement of FBR officials, potentially leading to corruption. PCMEA executive bodies members including Ashraf, Abdul Latif Malik, Akhtar Nazir Khan Cooki, and Ijaz-ur-Rehman and senior vice chairman Usman Ashraf expressed deep concerns on imminent changes. “Currently, the 1 percent tax deduction under FTR is electronically processed without human intervention, ensuring transparency,” Usman Ashraf stated, adding: “Changing this to a minimum tax rate requiring documentation will burden exporters and reduce Pakistan’s export revenue and foreign exchange earnings.” The PCMEA urged the government to maintain previously-functional the Final Tax Regime without changes, reduce the 1 percent income tax to 0.5 percent, and consider adopting back-to-back LC models like Bangladesh to support the struggling export sector

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