Pakistan PTA Asks To Adjust Leather Rebate Rate

Gulzar Feroze, chairman of the Pakistan tanning Association (PTA), said recently that PTA had asked the Pakistani government to raise the export rebate rate of the leather from goat skin, sheep skin, cow hide and buffalo skin from the current 0.8-1.17% to 6.3%, so as to enhance the competitiveness of the similar export products of India, China and Bangladesh. At present, the export tax rebate rates of India, China and Bangladesh are 6.3%, 7.5-11% and 15%, respectively. The rate of export tax rebate in India, China and Bangladesh is 15%.

Feroze said that the decision of the government to reduce the export tax rebate of leather products in March 2009 has severely hit the tannery industry of the country. It is suggested that the government make the first assessment of the "national trade policy" announced in July 2009, especially for the "2009-2012 year strategic trade policy framework".

He called for the establishment of a joint commission consisting of representatives of exporters of leather, textiles, carpets, sports products and surgical instruments, drafting a package of relief and incentive programmes, studying the impact of VAT implementation on these areas, and making recommendations to the Ministry of Commerce for approval.

The specific contents may include accessories and accessories for the export of leather products, which will continue to sell zero export duty and allow 5% of the duty free products to be exported to the above products.

Prior to this, according to the Palestinian strategic trade policy framework, the Palestinian government has provided financial support for the establishment of a leather processing plant and a leather factory to build its own laboratories.