PTA has shown deep apprehension about the discontinuation of the Power Tariff to five export oriented sectors

Mr Amanullah Aftab, Chairman of Pakistan Tanners Association (PTA) has shown deep apprehension about the discontinuation of the Power Tariff to five Export Oriented Sectors of the country. It includes the Leather Sector of Pakistan, which is accelerating the pace of exports as a result of vigorous efforts with the support of the Government of Pakistan and recorded the Export Growth of “Finished Leather” as below:-


Export of Finished Leather                                                                                                      Value in Thousand US$

Commodity 

July-January-2021

US$  

July-January-2022

US$  

Growth Rate 

Finished Leather 

84,938 

112,775 

+ 32.77% 

 

July-February-2021

July-February-2022 

 

Finished Leather

97,429 

134,168 

+ 37.71% 

 

July-March-2021

July-March-2022 

 

Finished Leather

113,321 

154,506 

+ 36.34% 

 

July-April-21

July-April-22 

 

Finished Leather  

129,538 

172,742 

+ 33.35% 

 

The overall Leather Sector of Pakistan with allied commodities is in progress with growth @ 15%. It could be concluded with further positive development by the end of the financial year up to June’2022 if the same level playing field with concessional power Tariff is continued to the extended by the Government of Pakistan at par with the regional competitors.

Chairman, PTA also showed apprehensions about the discontinuation of the power Tariff to this vital export-oriented Industry of the country, which would be impacted adversely to the export Leather Sector of Pakistan and would be detrimental to the national exchequer.

He also articulated for resolution of other pending issues/matters for the Industry as below:-


01.

Finalization with early issuance of SRO in supersession of SRO # 711, which is already expired in June’2021 for DLTL with the inclusion of “Finished Leather” @ 4% irrespectively, which is pending at Cabinet for the final approval for issuance of SRO.

02.

Immediate Removal of Anomaly for 5% Withholding Sales Tax on purchase of Raw Hides & Skins WHEREAS the “Raw hides & Skins” is already included in Recent Approved Finance Act, 2021 under Clause # 46AA as “Agriculture produce Itemresultantly all taxes is now exempted.

 

03.

Request for removal of 100% Cash Margin Imposition on Import of Tanning Industry under Two H.S. Codes # 3204.1300 & 3402.1190, which is imposed.

 

04.

Request for removal of irrational condition of Heath Certificate (Quarantine) on import of Raw Materials for Tanning Industry (Raw hides & skins, wet blue & pickled leather of cow, buffalo, sheep & goat skins) as imposed recently in
Import Policy-2022. It was removed in earlier Import Policy in 2020, but re-imposed again in Import Policy 2022. It is pertinent to mention here that that import of Raw materials is already supported with Quarantine Certificate issued by Ministry concerned at destination concerned of import before dispatch to Pakistan as such duplication issuance of quarantine certificate here in Pakistan for clearance is unnecessary/irrelevant, which is causing demurrage at ports for clearance with the due hassle.

 

Chairman, PTA strongly appealed to the Honorable Prime Minister of Pakistan, Mian Shehbaz Sharif, Honourable Federal Minister for Finance, Mr Miftah Ismail and Federal Commerce Minister, Mr Naveed Qamar to look into the matters of very significant nature for an adequate resolution to the core pending issues with the Ministries concerned for the better of this vital Industry and promotion of country’s exports to the desired extent.

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