The chairman of the Pakistan Tanners’ Association (PTA), Khawaja M. Yousef, has welcomed the Central Board of Revenue’s (CBR) decision to suspend sales tax audits for six months. This decision means that auditors will no longer be able to visit factories or industrial facilities without prior arrangement, and will therefore no longer be able to carry out spot checks on companies.

The chairman of the CBR stated that such visits by auditors in tanneries and other facilities had begun to create resentment at management level, as the visits caused disruption to production levels and were time consuming for management.

The PTA chairman is calling for the ban on audits to become a permanent situation, as he views the visits as unnecessary. He claims the same information can be acquired from the companies’ tax returns without causing disruption to the working day. He is also calling for raw hides and skins, wet blue at the import stage and finished leather be exempt from sales tax as the majority of finished leather is exported and sold on the international market.

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