New budget for Pakistan lacks boost for exporters - leatherbiz: Leadin Leatherbiz

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New budget for Pakistan lacks boost for exporters

06/06/2011
Fawad Ijaz Khan, chairman of the Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA), has welcomed a government decision to continue sales tax exemption on raw materials for exporters five sectors, including leather, in the federal budget for 2011-12.

However, Mr Fawad said that an increase of 1% in value added tax on imports for companies that work as commercial importers will increase the cost of raw materials for exporters since many exporters purchase their raw materials from these commercial importers.

He pointed out that overall no measure has been taken in the federal budget for 2011–12 to boost Pakistan’s exports. He said that the export target of $24 billion for the year 2011-12 will be achieved, but that there are serious doubts about the genuineness of some export activity. The PLGMEA chairman claimed that a lot of exports from Pakistan are over-invoiced or fake, with fraudsters submitting false claims to receive rebates on sales tax.


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