Duty revisions upset Pakistan’s leather industry
09/03/2009
Fawad Ijaz Khan, chairman of the Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA), has strongly condemned the country’s Federal Board of Revenue (FBR) for issuing new duty drawback rates for the export of leather garments and leathergoods. The new rate for leather jackets is 2.42%, up slightly from the previous rate of 2.38%. The new rate for leathergoods is 1.54%, which is less than the previous rate of 1.56%.
The association was expecting rates of 4.63% for jackets and 4.5% for leathergoods.
Mr Fawad stated that the FBR has failed to stick to an agreement to obtain the consent of the PLGMEA before announcing rates.
He explained that exports of leather garments have declined by 15% during the period from July 2008 to January 2009 compared to the corresponding dates the previous financial year. He warned that these export figures would decline further if the government fails to provide “a level playing field to the industry”.
He urged the FBR to review its decisions.
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