KARACHI: The Salt Manufacturers Association of Pakistan (SMAP) has expressed deep concern over the proposed shift from a 1% turnover-based Fixed Tax Regime (FTR) to the standard taxation rate of 29% of taxable profit in the Federal Budget 2024. The association warned that this change would be disastrous for exports and urged that the proposal to remove exports from the FTR must be immediately rejected to prevent further economic crises.
In a statement, Chairman SMAP, Qasim Yaqoob Paracha, said, “We stand united with Pakistan’s export industries in vehemently opposing the proposed abolition of the fixed tax regime in the federal budget. These budget proposals threaten to escalate harassment and corruption by tax authorities, driving away investors and creating an environment of uncertainty for businesses. “The business community categorically denounces these draconian measures. If these proposals are implemented, it will be very difficult to run the industries, and survival for industries will be impossible.”
Qasim Yaqoob Paracha added, “We urge the government to reconsider these detrimental changes. Should these proposals persist, we will explore all available avenues in consultation with export industries nationwide.”
SMAP reaffirms its commitment to advocating for policies that foster growth and sustainability for Pakistan’s export-driven enterprises, urging policymakers to prioritize dialogue and consensus-building with stakeholders in shaping future tax reforms.