Reap seeks zero-rated status for rice

Rice Exporters Association of Pakistan (Reap) Thursday demanded zero rating status for rice - the 2nd largest export commodity."We are receiving complaints from our members that the Federal Board of Revenue (FBR) has withdrawn the zero rating facility on utility bills from many rice exporters who are previously allowed zero rating facility on bills since 2007," said Noman Ahmed Sheikh senior vice chairman REAP.He said that rice export sector is the 2nd largest export commodity, but despite earning of about $2billion valuable foreign exchange annually, rice exporters are not given the benefits and other commodities' exporters are being facilitated."Now, rice exporters have to pay sales tax and income tax on utility bills and then they will make efforts for refund of these paid taxes, which will be a very hectic and lengthy process," Noman said.He requested Prime Minister Nawaz Sharif, Finance Minister Ishaq Dar and the Federal Board of Revenue (FBR) to include rice export sector in zero rated export sectors and exempt rice exporters from sales tax and income tax on utilities for rice export.Rice exporters will face financial difficulties after withdrawal of zero rating facility and their millions of rupees will stuck in GST, the vice chairman REAP maintained.News SourceNews Collated byPAKISSAN.comCourtesy Business Recorder