FPCCI demands relief for tanners
17/07/2007
In its proposals for Trade Policy 2007/08, the Federation of Pakistan Chambers for Commerce & Industry (FPCCI) pinpointed a number of problems within the country’s leather and textile sectors. It called upon the government to introduce new incentives for these industries in its forthcoming trade policy, which is soon to be announced.
The FPCCI asked for a 50% freight subsidy on air shipments for leather exporters, which would help to increase exports and help companies cope with high costs. It also suggests that all imports of components for the tanning industry should be exempt from sales tax, which is currently 15%.
It appeals to the government to provide a 100% subsidy to members of the Pakistan Tanners’ Association who attend intentional leather fairs. Furthermore, as utility costs are very high and supplies are unreliable, the federation asks that the government help toward utility bills for export-oriented tanners.
The FPCCI asked for a 50% freight subsidy on air shipments for leather exporters, which would help to increase exports and help companies cope with high costs. It also suggests that all imports of components for the tanning industry should be exempt from sales tax, which is currently 15%.
It appeals to the government to provide a 100% subsidy to members of the Pakistan Tanners’ Association who attend intentional leather fairs. Furthermore, as utility costs are very high and supplies are unreliable, the federation asks that the government help toward utility bills for export-oriented tanners.
The final demand is a total ban on wet blue split leather exports, which are used to make gloves, aprons and leather goods. A 20% export duty is already in force as the high export figures and low rates for this commodity are said to be affecting 250,000 families in the country.
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