KARACHI: Chairman, Pakistan Tanners Association (PTA), Muhammad Mehr Ali has appealed to the prime minister and federal finance minister to revise the proposed insertion of advance income tax to retain the regular practice which is in progress for the last several years for 1% final income tax adjustment to the exporters to save the exporters of Pakistan from further deterioration.

Deriving income from exports have to pay 1% tax at present on their export proceeds which is final tax. On the principle of horizontal equity that taxpayers with equal income should pay equal tax, for which it is proposed income from exports be subjected to normal rates with one percent tax collection on their export proceeds be treated as minimum tax.

It would really be detrimental to the leather industry of Pakistan for compliance while the existing 1% income tax adjustment against the total income of the exports is resulting best source of generating the fixed amount for the government kitty at final conclusion of final adjustment and the exporters of the industry are defraying regularly.

The cost of the production in Pakistan for leather industry is already at exorbitant extent as compared to neighbor competitors specially with basic utilities as compared below and the exports of leather sector of Pakistan is already in severe clutches of declining for the last 3 years consecutively, which was concluded for July-23 to April, 2024 with current plight of the industry is in negative (-) 19.60% for finished leather & amp; overall section is also stands in negative (-) 10.21% and accordingly further taxation on exporters will be last nail on coffin of exports and apprehended inability to achieve the desired objective(s).

Copyright Business Recorder, 2024