Home / Knowledge / News / Pakistani leather goods exports fall by 30%
Pakistani leather goods exports fall by 30%
Jun '10
Where Pakistan noted a 30 percent fall in the leather goods exports during July-May 2009-10, India during the same period, depicted a growth of 30 percent.

The Pakistani government, should therefore, consider fixing the value-added tax (VAT) for leather industry at zero percent, just like it has been done for the general tax. The leather exports of country for the corresponding period in 2008-09 was recorded at $1.20 billion.

Experts opined that, owing to higher production cost, the country's leather exports are being eaten up by its close competitors, thereby, nearing the end of the industry.

If at this point of time, VAT is imposed on leather sector, then the exports would lead to a further fall of 25 percent, owing to heavy taxes on raw materials and higher cost of production.

The country by exporting leather and leather products during July-May 2010 had barely managed to earn $800 million. With the imposition of VAT, it would lead to a loss of more $150 million.

The authorities by pioneering such a direction have additionally burdened the export sector, and this is believed to negatively affect the sector, which is of national significance.

The export sector, all around the world is exempted from the purview of taxation and no such notion of minimum tax system prevails in any of the countries. Even the legal manuscripts, do not mention anything with respect to such innovative concept.

Even now, the state government has not initiated any measures to provide any advantages to the leather sector. On other part, the Indian government has initiated timely measures for its leather sector, for instance, it declared a relief package of INR 4,000 million in its 10th leather plan and INR 9,130 million in its 11th leather plan, thus facilitating the leather exporters of the country to hike the exports by 28 percent.

An industry insider also stated that, a grant of Rs 2,560 million under the head of modernisation, capacity building and betterment of infrastructure of the sector has also been further provided to the Indian exporters by their government.

On the contrary, the Pakistani government ignored the recommendations of the leather industry, leading to adverse effects on the cost of running such a business. Demands made earlier by the industry people were repeated again recently, with respect to, the State Bank of Pakistan and other government bodies granting foreign exchange bookings in lieu of imports.

The main competition for Pakistan comes from countries like Turkey and Bangladesh and the authorities should take into consideration the hardcore reality.

Fibre2Fashion News Desk - India

Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Cindy McNaull

We have broad range of options in durable fabrics

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Larry L Kinn
Suominen Corporation

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

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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