The Pakistan Tanners’ Association (PTA) has submitted twelve proposals for consideration in the formulation of Federal Budget and Trade Policy 2006-07.

The association has requested a 25% freight subsidy to leather exporters out of the Export Development Fund (EDF); an increase from 50% to 75% for the participation in international leather fairs; a 6% Research & Development Fund on exports of finished leather; financial support above the 6% mark-up reimbursement for the establishment of wastewater treatment plants in individual tanneries; and duty free imports of all tanning machinery (both new and used). The PTA also asked for additional items such as tanned or crust sheepskin, crust lambskin and tanned or crust goat and kid hides and skins from India to be included in the Import Policy Order.

The organisation urged the government to review and withdraw the withholding tax at 0.1% on cash withdrawals from banks exceeding PRs25,000 ($416), which was imposed in the Federal Budget for 2005-06; to exempt the leather industry from a 1% withholding tax/income tax on the purchase of raw hides and skins; to remove a 20% import duty on basic chrome sulfate; to remove all import duty on formic acid; to withdraw a 5% duty on sodium sulphide; and to reduce the refinancing/bank interest rate from 9% to 5%.