KARACHI: President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Atif Ikram Sheikh has called for the immediate restoration of the final tax regime (FTR) for goods exporters, arguing that its withdrawal has adversely affected the export sector by creating operational bottlenecks.
In its budget proposals, the apex trade body said the removal of the FTR has significantly increased compliance requirements and documentation for exporters. Sheikh said the policy shift has also fuelled tax-related uncertainty and increased audit-related difficulties, undermining the ease of doing business for exporters.
“We recommend reinstating the FTR for exporters as a full and final tax liability to reduce the compliance burden on the business community,” Sheikh said.
The FPCCI president said the government should adopt a collaborative approach to ensure long-term policy stability.
“While we strongly recommend restoring the final tax regime to ease the burden on exporters, the exact rate of the final tax may be determined in consultation with relevant stakeholders to ensure a balanced and growth-oriented revenue model,” he added.
FPCCI Senior Vice President Saquib Fayyaz Magoon said exporters should be given greater flexibility under the taxation framework.
“To support export growth, the upcoming budget may allow individual exporters to choose between the final tax regime (FTR) and the normal tax regime (NTR), depending on their business structure and operational requirements,” he said.
