Home / Knowledge / News / Leather exporters want redemption from withholding tax
Leather exporters want redemption from withholding tax
Aug '08
Pakistani leather exporters have pleaded the Federal Board of Revenue (FBR), to bring back the provision of Sales Tax (ST) registration facility at import stage and free them from one percent withholding tax on imports.

In an exclusive interview with Fibre2fashion, Mr Asif Rahim, Secretary, Pakistan Leather Garments Manufacturers & Exporters Association (PLGMEA) stated, “Leather industry is a zero rated industry, it means the exporters don't have to pay import duty on raw materials, neither do they have to pay income tax or sales tax. The association is also looking forward for the Government to provide them with the Exempted Certificate.

Explaining further Mr Asif divulged, “One percent withholding tax is to be paid at the export stage, which is the only final liability for exporters. Any kind of tax paid for the product is refunded by Govt, if goods are exported, and in case these leather products are sold in domestic market then taxes are applicable.”

The leather exporters of the country are taxed under presumptive tax regime and tax deducted from export proceeds are deemed to be final tax under section 154 (4) of Income Tax Ordinance, 2001.

Entrepreneurs related to the export of leather goods opine that this eradication will only simplify the process, as tax deduction at import stage leads to blockage of funds, which ultimately is refunded to them.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 24th Feb 2017

Q4FY17 EPS dips 11% at apparel retailer Macy’s

For the thirteen weeks period ended January 28, 2017, earning per...

Textiles | On 24th Feb 2017

Net income slips at Westlake Chemicals in Q4

For the three months ended December 31, 2016, net income at US...

Apparel/Garments | On 23rd Feb 2017

NAFTA renegotiation puts Mexico-US jeans trade at risk

The almost imminent renegotiation of the North America Free Trade...

Interviews View All

Veronique Lee

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Abhishek Samdaria

GST will certainly reduce a lot of paperwork in future

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search