Tanneries cannot afford to shut down industries: PTA

The sudden decision of the government to lockdown all industries caused a severe blow to the tanning sector dealing in perishable raw material of hides and skins. While talking to the Business Recorder, Pakistan Tanners Association's former Chairman Agha Saiddain said the government should have allowed partial shutdown for industries of continuous process.
"The tanneries have raw material of millions of rupees in process and cannot afford to shut down their industries with immediate effect. The government should allow at least one week to process raw material already in production," he added.
He suggested that tanneries might be allowed to continue work in their wet blue section to save hides and skins valuing millions of rupees. He said since slaughterhouses were open and hides/skins were by-product of beef and meat, that whole material would be wasted if not processed in time.
Agha further added that the tanning sector was already in shambles due to cancellation of export orders from Italy, China, and Hong Kong which were main destinations of Pakistani leather. He requested the government to declare the tanning industry as calamity-hit sector and announce special measures to rescue this industry.
He also demanded of the government to allow zero rating under previous SRO 1125 which was rescinded by the government besides allowing DLTL on export of finished leather under SRO 711(1) 2018 08-06-2018 as was allowed by the previous government. He said the withdrawal of sales tax, additional sales tax on the import of raw hides and skins can help develop local leather industry.
Agha further said that since the sector was hit very badly due to coronavirus in China, Italy, South Korea, and Europe as such government must announce export support funds like India and China. He also asked the government to defer deduction of 0.25 EDS, social security, old age benefit and income tax at least for one year.
If these measures are not taken, the industry will be closed and forced to lay off their workers. "We want to keep our factories running even at loss and don't want to lay off our workers during this difficult time but this is only possible if government also realizes its responsibility," he said.