PTA presents leather proposals
A delegation from the Pakistan Tanners’ Association (PTA) met with government ministers last week to discuss proposals for the leather industry in relation to the federal budget for 2010-11.
The delegation was led by PTA chairman, Gulzar Firoz, along with vice chairmen Shahid Mahmud and Shaikh Muhammad Naim and former chairman Agha Saiddain. They met with Sohail Ahmed, chairman of the Federal Board of Revenue to discuss possible solutions for the leather sector.
The PTA requested that the zero rating policy relating to sales tax should be maintained in order to protect exporters. It pointed out that it is impossible to levy VAT on raw hides and skins as suppliers are not registered with the sales tax department.
The leather sector representatives also urged the government to reduce customs duty on various chemicals and other components used in leathergoods, particularly formic acid and chrome powder. In addition, the PTA members said withholding tax on imports should be reduced from 1% to 0.25% and that the export development surcharge should be suspended for at least three years. Finally, they asked the government to remove the 16% sales tax for spare parts used by the tanning industry.
