Shabbar Zaidi says reversing zero rating for exports regressive approach for Pakistan tax system

Former Federal Board of Revenue chairperson Shabbar Zaidi says reversing the zero rating for Pakistan exports  will be regressive.

He tweeted about this on Wednesday, saying that if the zero rating system is restored, we should forget about any tax system in Pakistan.

He called for an improvement in the refund system.

Zaidi said he fought and won the war to abolish this system.

The former FBR chairperson’s comments come when there have been reports circulating of a government debate on restoring the zero-rating system.

Some are saying  that small exporters face difficulty buying inputs by paying the sales tax first and then applying for refunds.

The ones in the favour are reportedly pushing the FBR to restore the zero rating regime for five exporting sectors.