‘No chance of evasion of income tax on exports’
Lahore – Pakistan Tanners Association has said that exporters are paying full tax to the government and there is no chance of evasion of income tax on exports. “Exporters, whether making profit or loss, will have to pay 1% income tax on the value of each export consignment while 1% withholding tax is mandatory on all export consignments. Similarly 0.25% is deducted as EDS on the F.O.B value of each consignment. All manufactures cum exporters pay duties and taxes on import of chemicals and spare parts.”
Pakistan Tanners Association former chairman Agha Saiddain said that any exporter whether he files the statement or not will have to pay income tax at the time of shipment is made or proceeds realized. All exporters are bound to pay withholding tax 1% on exports as such there is no question of not filing income tax returns.
He said that FBR claim that only 50 percent units file income tax, is not true in case unit is a manufacturer cum exporter. However those units who closed their operations due to energy and other problems and are no more in business may be non filers.
He asked the FBR to conduct an independent survey as how many units were closed in last 3 years and how many are still alive and breathing their last. Due to higher energy prices, wages, taxes and without proper export policy the number of units are running 3 days a week or just waiting some good time to come in future years. Agha further added that FBR must also keep an eye on other reason as to why number of non-filers has reduced.
