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 Pakistan’s export sector 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.”SMAP went on to categorically reject the proposed tax changes, labeling them “draconian measures.” Mr. Paracha stressed the severe difficulties businesses would face if these measures were implemented, potentially jeopardizing their very survival.Qasim Yaqoob Paracha urged the government to reconsider these “detrimental changes,” emphasizing their potential negative impact. They warned that if the proposal remains on the table, SMAP, in collaboration with other export industries nationwide, would be forced to “explore all available avenues” to challenge it.SMAP reaffirmed its commitment to advocating for policies that promote sustainable growth for Pakistan’s export-driven businesses. The association urged policymakers to prioritize dialogue and consensus-building with stakeholders when formulating future tax reforms.
