The Chairman of the Pakistan Tanners Association, Muhammad Mehr Ali, has drawn the immediate attention of the government to the core issues for adequate resolution with immediate effect to save this vital Tanning/Leather Sector of Pakistan from further decline, which has already dropped alarmingly for the last six months export figures for overall leather sector is (-) 3.12% as compared to the corresponding period. At the same time, a continuous declining trend has been observed for the last two years.
The Chairman of PTA, along with some senior members of PTA, have invited the attention of the Federal Commerce Minister with his Team during the LEPC Meeting held on 28.08.2024 virtually to the following issues of the Leather Sector of Pakistan, and it was assured to resolve the core issues on priority basis for providing a level playing field to this value-added Industry of the country:-
| 01. | Remove the irrational condition of the Health Quarantine Certificate at the time of export of finished leather duly valued and import basic raw materials for the industry. |
| 02. | Removal of Irrational 2% ACD on import of Cow & Buffalo raw hides & skins against H.S. Code # 4104.1100 & 4107.9200, which is not included in the 5th Schedule, while the rest of allied sheep & goat wet blue leather is exempted for the import already in 5th Schedule. It is purely an anomaly for rectification, as admitted during the LEPC meeting. |
| 03. | Finalising the Duty Drawback rates for finished leather is still pending at IOCO despite a long lapse. |
| 04. | Release of pending Rebate claims, Sales Tax Refunds, and income tax claims, especially to entertain Deferred Sales Tax claims that have been pending for a long time for release to the Leather Industry. The approximate amount pending with the government is around Rs.2.17 billion for the industry. |
| 05. | To Restore the Concessional Tariff on Electricity and gas to export-oriented industries, including the Leather Sector of Pakistan, which was eligible before March’23. The tariff is much more exorbitant in Pakistan than in neighbouring competitors, rendering our member exporters UNABLE to compete in the international market for securing export orders for finished leather with allied commodities. |
The Chairman of PTA, Mr. M. Mehr Ali, has expressed deep apprehension about the further decline of exports for the Pakistani leather Sector if the Government/MOC/FBR does not take immediate action to resolve the above core issues.
In conclusion, Mr. M. Mehr Ali, Chairman of PTA, articulated a strong “Appeal” to consider removing unnecessary obstacles to enable this vital Industry to play its due effective role in strengthening the country’s exports with the increase of exports of finished leather.
