Exporters reject 29% tax on export earnings

Leaders of the All Pakistan Fruit and Vegetable Exporters Association have strongly rejected the government’s proposal to levy a 29% tax on export earnings in the financial year 2024-2025 budget, replacing the full and final withholding tax of 1% under the fixed tax regime. They warned the federal government that placing exports under the normal tax regime by abolishing the fixed tax regime will have a severe impact on Pakistan’s economy. Speaking to journalists at the Karachi Press Club on Tuesday evening, they stressed that the government must explain its allocation for Research and Development (R&D) and spend ample funds to address the rising population and serious food security concerns in the country.