The PTA has hit out at the PLGMEA’s recent proposal for a 20% duty on exports of semi-finished and finished leather. (See leatherbiz.com, ‘Pakistan leather garment exporters push for more concessions’ - 29.05.03.)

PTA chairman, Mr. S.M. Naseem claims the additional tax is unnecessary as Pakistan’s exports of leather garments declined just 3% between July and April, 2003, while exports from Pakistan’s competitors, China, India and Turkey fell 30%.

He said that these countries had not found it necessary to impose duties or restrictions on exports of finished leather and pointed out that they had actually imposed additional taxes on imports of such leather.

Naseem requested that the Ministry of Commerce and Central Board of Revenue (CBR) should instead impose a 25% duty on imports of finished leather as huge quantities were lying unused.

He said that Pakistan’s tanners were not receiving enough orders from garment manufacturers due to lack of demand caused by changes in trends and fashion and seasonal changes. He further complained that leather garment manufacturers were not using Pakistan-based raw materials, which can be purchased at the raw and wet blue stage.

The PTA once again called for the CBR to increase duty draw back rates on leather exports by at least 3%.

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