LAHORE -  Pakistan Tanners Association (PTA) Chairman Anjum Zafar has hailed the federal budget for the year 2017-18 wherein all major demands of leather sector have been accepted and incorporated in the budget.

He said, “The demand of removal of Custom Duty on import of basic raw materials for the Industry (Raw hides & skins/pickled and wet blue) was accepted as we proposed to ministry of commerce, which was the fundamental need for the Industry to meet the scarcity of raw materials for necessary value addition.”

“This step by the government will help a lot in reviving the dying leather industry back and compensate for the lost production capacities for export but it is also requested that farming and breeding of animals should be encouraged for future of industry and basic protein and milk requirements of public in general,” he added.

The government also accepted demand of removal of duty on Stamping Foils, which is the new technology in leather tanning industry to produce high quality fashion leather/articles. This will help to gain additional share in international export market and to compete with other countries manufacturers.

He said, “Announcement for the release of all pending claims especially RPO's for the Sales Tax to leather sector before August 14, 2017 would obviously facilitate our member exporters to avert their financial stringencies to have working capital for the smooth execution of exports orders with convenience, which was the dire need of the Industry.”

Zafar also requested that minimum turnover tax of 1.25 percent announced in budget should not be levied on export sector under final tax regime 115(4) which is 1 percent presently and is already much higher than normal taxation and export sector is already under lot of pressure of high cost of doing business.