Chairman Pakistan Tanners Association (PTA) Gulzar Firoz has said that the leather industry is facing serious crisis because of lack of export orders, liquidity crunch and no incentive from the Government on exports. He referred to the advertisement given in the various newspapers on October 5, 2015 which highlighted PTA's five major demands.
He said that if these demands are not met immediately the crisis will worsen and export will further decline. If these demands are met immediately he assured that the exports can be doubled in the next five years. These five demands are following:
1:-To implement rates of duty drawback on export of finished leather as originally agreed with Input Output Coefficient Organisation - Government of Pakistan (IOCO) and also this should be w.e.f. the date of application ie May 17, 2012.
2: To announce zero-rating of local taxes on export in shape of D.L.T.L. at the rate of 5 percent to be reimbursed through banks on realisation of export proceeds.
3: To reduce ERF to 3 percent
4: To release all pending duty drawback, sales tax, deferred sales tax and income tax refund
5: To provide level playing field with regional competing countries like India, China and Bangladesh He said that leather sector is awaiting for the special package to be announced by the Prime Minister.-PR
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