Govt mulls FTR regime’s restoration

KARACHI: Government is mulling to restore the final tax regime (FTR) for commercial importers, which was abolished in the budget for the current fiscal year of 2018/19.

Karachi Chamber of Commerce of Industry (KCCI), in a statement on Tuesday, said Minister for Finance, Revenue and Economic Affairs Asad Umer principally agreed to restore the FTR for the commercial importers in the larger interest of trade and industry.

KCCI’s delegation met with the finance minister in Islamabad, according to the statement. The FTR regime was replaced with minimum tax in the budget 2018/19. Importers are exempted from audit on payment of six percent withholding tax.

Finance minister further assured KCCI’s delegation that recommendations given by Tax Reforms Commission would be implemented “in letter and spirit within a month”.

Umer said the government will not impose regulatory duty as a revenue generation measure but it will be to protect and safeguard the interest of local industry on the specific recommendations by the ministries of commerce, industries, textiles and investments.

On decisions to allow purchase of new vehicles and property by non-filers of tax returns, finance minister said the government would certainly look forward to extending more incentives to filers and discourage non-filers. Government is devising special measures to accommodate and facilitate non-residents/overseas Pakistanis, he added.

Finance minister appreciated the proposals of Karachi Chamber to allow the non-residents/overseas Pakistanis to purchase vehicles and properties, despite being non-filers, on the basis of foreign exchange remittances received through banking channels.

Umer further agreed that gas price disparity between export-oriented and local industries needs to be rationalised as supplying gas to local industry at higher rates is not fair as it meets demand of goods from the entire population of the country and creates millions of jobs. KCCI’s delegation said the implementation of assurances would certainly create a win-win situation for everyone and help in dealing with the ongoing economic crises being faced by the country.