PTA opposes World Bank proposal
The Pakistan Tanners Association (PTA) has urged the government to maintain the status quo on taxes following a suggestion made by the World Bank that it should abolish its policy of zero rating on sales tax for certain products including leather and leathergoods, which was introduced in this year’s budget.
S.M. Naseem, chairman of the PTA has strongly opposed the proposal
stating that the country’s leather sector has benefited and grown as a result of the policy as it has created a level playing field for genuine manufacturers and exporters. He added that prior to June this year, when the zero sales tax was introduced, the government had been refunding far more money to exporters and that this money was often claimed unfairly. He also said that a move to abolish the current system would jeopardise the process of industrialisation and the promotion of exports as the leather industry is already under pressure and exports have continued to decline this year.
