Rice exporters have been warning of a drastic drop in exports if the government maintains its decision to shift the sector from the Final Tax Regime (FTR) to the Hybrid Tax Regime.
“We see distress amongst rice, maize and sesame exporters, and they are just fulfilling past commitments and are not ready to seal future orders due to apprehension of tax audits and recovery notices by the FBR.”
The shift from FTR to Hybrid Tax Regime, announced in the budget, will further damage them economically, leaving them uncompetitive in the international market, which is driven by cut-throat competition and subsidies by competing countries,” a delegation of rice exporters told the finance minister.