The Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) has called upon the government to increase the duty drawback rates that apply to the export of leather garments. In its comment on the forthcoming budget for 2003/04, the association also demanded that the sales taxes that apply to raw hides, skins, wet blue and crust leather be reduced to a level of 5%.

The association’s other recommendations include:

• Amendment of Section 73 of Sales Tax Act 1990, so that the requirement for suppliers payments within 120 days be abolished for garment exporters.

• Sales tax auditors should refrain from carrying out multiple audits of registered units.  The practice of carrying out spot checks of stocks should also cease.

• GST on telephone bills should not be claimable in the same way as  other inputs and utilities. Excise duty should be either abolished or some mechanism devised for its refund.

• The abolition of the duties that apply to imports of finished leather with wool. 
   
• Suspension of the 0.75 duty that applies to leather garment exports for two years to help the industry weather the current crisis.

 

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