Five zero rated sectors: PTA chairman urges restoration of incentives

KARACHI: Chairman, Pakistan Tanners Association (PTA), Sheikh Afzal Hussain has urged Prime Minister Imran Khan to restore the incentive with further extension for the reduced gas & electricity rates for all core five zero rated sector including leather sector with immediate effect, with the adjustment of July- 2020 bills for facilitation in continuation to this vital sector of the country to progress positively in achieving the desired goals for promotion of exports.

He informed that the incentives for the reduced tariff for gas & electricity allowed by the government to all five zero rated industries of the country including leather sector has already been expired in June - 2020, which is immediately required to be extended further on priority with the proposed Indefinite period for leather industry of Pakistan.

He also shared that the current bills issued on account of gas & electricity for the month of July-2020 with the normal/regular rates with the additions of extra charges such as Neelam Jehlam Dam charges, fuel adjustment etc., etc., resultantly the quantum of amount for the bill(s) are irrationally increased with double amount almost with 80% to 100% amount as compared to the bill of June-2020, which is completely unbearable by the industry under the existing business climate and rendering the Industry out of the park from the international market being in competitive because of high cost of production.

The tanning industry being mother industry of the country is already in severe crisis of declining trend, which is recorded (-) 27% with the conclusion of financial year July- June 2019-2020 with corresponding period.

Copyright Business Recorder, 2020