KARACHI: The Chairman, Pakistan Tanners’ Association (PTA), Muhammad Mehr Ali has said the present plight of the Industry which is getting from worst to deteriorated gradually (day by day) and now standing at the verge of closure of its operations in Pakistan because of some fatal basic problems as summarized below if not resolved by the Government with immediate effect for the survival to this vital export oriented Industry of the country, who are contributing significantly to the country’s GDP growth :
The Government has recently imposed more new taxes to this Industry in Federal Budget 2024-25, which were earlier relaxed while the Industry is already over-burdened with the duties/tariff resultantly already un-viable and new invasion of duties/taxes is becoming the Industry “Out of the Park” specially from international market for securing the export orders for finished leather.
New Duties Details: 2% ACD on HS Code 4107.1200,4104.1100, 4107.9200,4106.2100, 4106.2200, 4112.0000,4113.1000, 4104.1900, 4105.2000, 2830.1010 etc. etc., & 5% RD on HS Code 3909.5000.
The Industry is facing acute shortage financial capital, which is already with Government’s kitty & approximate accumulated amount of the industry is Rs2.5 billion payables to this Industry on account of sales tax, duty drawback claims, income tax, differed claims etc., which is rendering our member exporters unable to continue their business operations and strongly apprehended to consider to close their operations while some units have closed down owing to financial instability.
Copyright Business Recorder, 2024
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