PTA criticism for Pakistan budget
Gulzar Firoz, central chairman of the Pakistan Tanners’ Association (PTA) says that the new budget for July 2010 to June 2011 will do little to help leather producers and exporters. He claims the budget, which was introduced by finance minister Hafiz Shaikh on June 5, totally ignores proposals from the leather industry.
Mr Firoz welcomed the deferment of VAT until October 1, but for the three months leading up to this date the subject should be discussed at length with the relevant stakeholders. It will harm leather manufacturers, he says, if goods that are currently ‘zero-rated’ are subjected to VAT.
The PTA had asked the government to reduce duties on important raw materials used by the industry including chromium sulphate, formic acid and fat liquors, but the request was ignored. It also opposed the 0.3% levy on pay orders, online transfers and demand drafts, as well as the heavy penalties imposed for tax return defaults.
Mr Firoz welcomed the government’s decision to reduce tax on electricity bills from 10% to 5%; however, he condemned further increases in power charges, which he said were unfair and would inhibit industrial growth.
He ended by saying that the budget needed to be more export friendly in order to prevent export-oriented industries from sustaining further losses.
