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

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

Paolo Ocleppo
Sandvik Hyperion

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

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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


news category

Related Categories:
June 2017

June 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search