Daily Times

KARACHI: During July-March period of current fiscal year, the export of finished and semi-finished leather goods have declined by 20% in terms of value, and in terms of quantity, finished leather export declined about 20%. “Even on this very serious issue, the government did not listen to the grievances of Pakistan Tanners Association (PTA), said members of the second largest foreign exchange earning sector of the country. PTA Chairman Gulzar Firoz, senior member Agha Saiddain and others said that leather industry has been facing the severest crises in the last 30 years. They said the recession in economy in the world was one factor but cost of doing business in Pakistan and export incentives were more serious factors leading to sever decline in the export. They asked the government to take steps seriously required to salvage the sector from further decline and requested the prime minister, finance minister and commerce minister to hold meeting with PTA delegation on priority basis. “The government should bring down the rate of electricity and gas, besides increase Duty Drawback Rates as recommended by Input/Output Co-efficient Organisation, which were slashed by Federal Board of Revenue (FBR) without giving any reason,” they urged. They demanded re-finance rate to be reduced from 3.5 percent to three percent and to exempt raw hides and skins from levy of Sales Tax, which has already been accepted in Finance Bill Sixth Schedule of the Sales Tax Act, 1990, and should be given retrospective effect from June 12, 2013. They were of the view that all pending rebate/refunds of Customs, Sales Tax should be released immediately before May 30.