KARACHI: During July 2016 to February 2017 leather and leather products exports have witnessed a decline to around 6.36 percent to $8.2 billion, which is certainly alarming and this trend could be more negative at the time of conclusion of financial year June 2017, said executive members of Pakistan Tanners Association (PTA).
Ministry of Finance, Commerce and Federal Board of Revenue should take prompt step in inclusion of remaining 8 HS Customs codes, core for finished leather in SRO 62(I)/2017, February 2017 as they had been omitted by Ministry of Commerce and Ministry of Finance inadvertently despite PTA advance intimation for inclusion.
With wrong SRO around 95 percent of manufacturers could not avail this incentive and made calls to Secretary Finance and others officials in Ministry of Commerce from Hong Kong, as they were participating in 3-day Asia Pacific Leather fair.
PTA requested to ministries that leather sector should be given firm assurance at least orally to enable PTA large delegation of 65 member exporters under the aegis of Pakistan Pavilion to enable them to offer more effective competitive prices of finished leather to the valued potential foreign buyers and customers specially to the new with due incentive of 5 percent drawback of local taxes and levies, as announced by Prime Minister (PM) in January, 2017.
We have been facing major competitors specially Brazil, India, Bangladesh, China and Sri Lanka who are also participating in vent in large number.
Clearance of pending and Deferred Duty Drawback and Sales Tax claims as well as income refund claims, worth in millions of rupees in Customs and Sales Tax Collectorate for stuck up for last many years should be released immediately, opined Agha Saiddain senior executive of PTA.
Early issuance of notification/SRO for 75 percent subsidy on international testing laboratory for leather, vital element in export of finished leather to world renowned brands and reputed buyers has not yet been fulfilled.
Removal of 4 percent Custom Duty on import of basic raw materials of raw hides and skins for meeting the scarcity of the industry as well as to remove Customs Duty on import of tanning machines which has already been allowed/removed for textile sector and is also mandatory for 2nd biggest export oriented leather sector, as our livestock has reduced to level of below 2006.
PTA requests PM and Federal Commerce Minister to intervene into matter for the adequate resolution on war footing basis.
Pakistan’s major export-oriented sectors textile, sport goods, surgical and carpet are still showing negative growth despite they have received zero-rating facility from the government for the ongoing financial year.
