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Govt to share 75pc cost with leather industry
2017/2/8 16:30:55 Source: Author: 点击率:

LAHORE - Federal Commerce Minister Khurram Dastagir has assured the Pakistan Tanners Association (PTA) of allowing 75 percent cost sharing by government on expensive international lab testing on leathers for various chemicals to ascertain various compliance standards set by EU and different customers.

The minister also vowed his full support for the demand of leather industry for waiving 4 percent customs duty on import of hides and skins on the analogy of allowed waiver of duties for textile industry on imported cotton. The minister made these commitments in a meeting with the office-bearers of the PTA.

On the occasion, PTA Chairman Anjum Zafar emphasized that the requested waiver on customs duty is a dire need of industry due to fast depleting livestock and excessive slaughtering for meat export from the country.

He said the figures of available livestock has gone below to the levels of year 2006 which is very alarming and future of leather industry is at stake if this matter is not addressed by raising livestock farming and breeding on urgent basis as it will take years to raise livestock.

The Minister also gave his final assurance for Leather Export Promotion Council to be activated within the next 15 days. Matter of pending huge rebate claims especially in Lahore and Multan was highlighted during the meeting, as FBR is not releasing funds to these collectorate on pretext that they are not generating enough revenues for the government.

The fact is that all exporting and manufacturing units of leather in Punjab are making imports of chemical and machinery and spares through Karachi ports hence contribute a significant amount in revenue as all taxes and duties are paid but this is accounted for in Karachi customs revenue, the PTA chairman added.

The minister assured his advocacy and support on the highlighted issue. He also assured the industry to take up matter with FBR to stop unnecessary harassment by FBR tax officers to exporters who are paying final tax liability of 1 percent on exports and hence exporters cannot focus on marketing and remained in the fix of attending unnecessary tax notices, audits and hearings.

Zafar made the minister realise the pain of the industry where government’s Input Output Coefficient Organisation (IOCO) approved and recommended refund of duty drawback for chemical consumed for duties paid on leather of 1.78% and 3.08% on finished leather goat/sheep and cow/buffalo after three years of hard work, surveys and calculations.

The FBR ironically and unilaterally taxed 20% by slashing down their own IOCO recommended rates that is unfair to the industry. This matter was taken up and the minister promised his support to take up the case with FBR for revision of SRO as per IOCO recommendations dated 29-May-2015.

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