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PTA seeks exemption for hides & skins from VAT
Jun '10
Being an agricultural produce, Pakistan Tanners Association (PTA) has demanded the Federal Government to exempt hides and skins from value-added tax (VAT).

Raw material, which is the byproduct of animals, is the base of tanning industry that directly benefits the poor class of the society. Higher production cost and taxation are continuously declining the exports of leather products.

These exports stood at $1001.19 million during July to April 2007– 08 and slipped down to $808.33 million during the same period in 2008-09, while in July-April 2009-10 these exports stood at just $686.49 million.

Therefore, the overall decline in these exports, since 2007-08, is over 31 percent. The tanning industry fulfills around 40 percent of its annual requirement of hides and skin by purchasing it on Eid-E-Qurban from mohala mosques, hospital, orphan houses, charity homes, political and religious parties and from Imam Barghas.

Moreover, discontinuing zero rating of this sector would prove to be perilous for the sector, during the current situations, averred an expert.

Fibre2Fashion News Desk - India

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