Trade Chronicle May & June 2015

TRADE CHRONICLE
Leather Industry
Concern Over Decline in Leather Export
Chairman, PTA, Mr. Muhammad
Musaddiq has expressed concern
over downward trend in export of
Leather and Leather Products from
Pakistan in spite of facility of GSP
plus status to Pakistan. He in a
statement said despite many hurdles
in exploring the export as per
aspiration of the Prime Minister of
Pakistan, the Leather Industry with
dedication and hard work
successfully organized first Pakistan
Mega Leather Show in Lahore
International Expo Centre during 6-
8 th March, 2015 alongwith other
leather related associations and allied
services to accentuate the image of
Pakistan world-wide.
He stated that neighboring countries
like China, India and Bangladesh
have registered considerable increase
‘PTA members filing
100pc tax returns’
Pakistan Tanners Association
(PTA) members are filing 100
percent income tax returns,
Association Chairman Muhammad
Musaddiq said in a statement
recently.
He said the Pakistan Tanners
Association members have
national tax numbers (NTN)
certificates and are filing 100
percent of their obligations by
paying one percent income tax on
export proceeds through banks,
besides paying other taxes such as
sales tax, advance tax, income tax
at the import stage, customs duties,
excise duties etc, on a regular basis.
in its export of Leather & Leather
Products as 4%, 18% and 32%
respectively while the export of
Leather & Leather Products from
Pakistan is still stagnant @ US$ 1
billion since last several years and
drastically is decreasing during the
period of current financial year July-
February 2014-15 by 1.63% as
“The leather industry (tanners)
mostly depends on imported
machines, imported chemicals and
spare parts to produce best quality
value-added leather as per the
foreign customers’ demands,”
Musaddiq said.
The Pakistan Tanners Association
chairman said the members had
already paid more income tax than
their liability, as million of rupees on
account of income tax refund claims
after adjusting their annual tax
liability are still lying with the Income
Tax Department.
The export of tanned leather /
finished leather for the period of
July-June (2013/14) was $551 million
of the total export proceeds of
leather sector, he added.
compared to the same period of last
year which is alarming.
He urged the Government to take
stock of the situation causing decline
in export of the value-added leather
industry and increasing cost of doing
business as well as lesser
compatibility against competitors.
He highlighted following major hurdles
of the dwindling Leather Industry
which need preferential attention for
its revival. Due to regional devaluation
of currency, cost of doing business,
high cost of energy in Pakistan, to
allow Zero Rating Sales Tax Status to
Leather Industry while all regional
countries keep zero rating of taxes on
exports whereas there are multiple tax
regimes in Pakistan and export industry
is dying with slow poisoning.
PTA hails federal
budget
Pakistan Tanners
Association (PTA)
has announced that
with the continued
support of Mr.
S.M. Muneer,
Chief Executive, Trade
Development Authority (TDAP)
as well as cooperation and support
of all the three leather related
Associations i.e. PLGMEA,
PFMA and PGMEA, the
Government has granted
exemption of Sales Tax on local
supply of raw hides and skins in
the Federal Budget 2015-16, which
was announced on 5th June, 2015
under Financial Bill 2015.
Trade Chronicle - May - June 2015 - Page # 30