A delegation of Pakistan Tanners Association (PTA) led by its Chairman Sheikh M. Afzal Hussain held two different meeting with the President of Pakistan Dr. Arif Alvi and Chairman Federal Board of Revenue (FBR) Shabbar Zaidi and placed to them various core issues confronting by PTA's members / leather sector of Pakistan, which needs mandatory to be addressed for prompt redressal to provide level playing field to this vital industry of the country in comparison with the neighbor competing countries like India, Bangladesh & China to make our members motivate with facilitation for playing their pivotal role continuously for the promotion of exports of leather sector of Pakistan.
Briefing the media Sheikh M. Afzal Hussain said that President has assured the delegation to take up the matters with the concerned ministries like MOF, MOC & FBR strongly for the desired resolution with his recommendation.
Afzal Hussain, Chairman, PTA also shared the outcome of 2nd important meeting of the delegation with Chairman, FBR and discussed all core issues, which are vital & detrimental to leather industry including:-
1: Fixing of Ceiling/Benchmark for the refund of Sales Tax for finished leather. Chairman, FBR informed the delegation that the required ceiling has already been revised and inserted in the FASTER Programme system, which is expected not less than 10% for smooth submission of claims without any hurdle. PTA delegation hoped to resolve this core issue for the refund of sales tax for finished leather with revised benchmark/ceiling re-determined by FBR.
2:-Rates for Duty drawback for finished leather for cow, buffalo, sheep & goat skins, it was ensured to PTA's Delegation that the revision of Rates would be considered favorably for revision with the same rate already approved by IOCO instead or existing rates.
3:-Withdrawal of SRO No. 327, which was revoked recently by FBR, the Delegation was also assured to consider it for the required restoration of SRO No. 327, which was very hopeful to our members exporters for the import of required raw materials for the Industry for meeting the consumption requirement for export purpose for yielding the sizeable foreign exchange for the country.
4:- Rest of core issues were also discussed in detail with Chairman, FBR such as withdrawal of 2% ACD on import of cow & buffalo, acceptance of indemnity bond for 17% Sales Tax rather than payment of 7% cash & 10% indemnity bond for the import of tanning machineries for the up gradation of the Industry etc.
He said that the Chairman FBR assurance for the resolution of the issues and for the revision of ceiling, which is expected not less than 10% for finished leather to meet the requirement of FASTER Programme for smooth and in time clearance for the refund of Sales Tax to our members, who are severely suffering financially even unable to import the chemicals & raw materials because of liquidity crunch.
Copyright Business Recorder, 2019