Reforms and Revenue Mobilization Commission recommendations termed anti export

The report submitted by the Reforms & Revenue Mobilization Commission (RRMC) has been termed by value-added exporters as anti-export. The report was submitted to the Ministry of Finance by RRMC Chairman Ashfaq Tola.

Textile exporters warned that the unwise budgetary recommendations and policy measures will ruin their efforts to enhance exports. The RRMC has recommended changing the current minimum tax on export turnover which is considered the final tax liability by imposing an additional tax on the foreign exchange income of the exporters. The exporters allege that they were not even consulted in this regard.

Fix Tax Regime is in vogue for a long to support exports and address trade balance which is yet to be achieved. In the absence of a trade balance applying a normal tax regime to exporters will discourage exports and will be a futile exercise.

The exporters allege that the RRMC chairman knows nothing about the export. He holds a complaisant personality whose recommendations to the government are always anti-export and to benefit some particular business circles only. They advised the government to consult actual stakeholders instead of depending on so-called consultants.

The exporters noted with deep concern that big businessmen regularly meet the government to advise and suggest the promotion and business development of SMEs. But the SMEs are struggling for survival, having no representation and no say in the government. Instead, exports of those few blue-eyed businessmen have greatly flourished.

In recent times, 918 business entities engaged in export have closed and shut down their export activities. They asked the government to realize that when it accorded importance to textile exports and started implementing the Textile Policy, the textile exports were enhanced. Unfortunately, from the announcement of the first Textile Policy in 2014-2019 to the existing Textile Policy in 2020-2025, no single policy was implemented completely.

Textile exports would have enhanced from 25 to 40 percent in a year if the Textile Policy is fully implemented. The government should also take notice of why, despite availing of GSP Plus status in the EU, Pakistani textile export has not achieved a milestone increase.

Exporters advise the government not to experiment with exports on the unfair advisory of consultants/advisors. Instead, it should take measures to reduce the cost of doing business.