Karachi, February 19, 2014 (PPI-OT): Sheikh Saqib Saeed Masood, Chairman, Pakistan Tanners’ Association expressed his deep concern on news appeared recently in print media that the Government is considering to increase Sales Tax from existing 2% to exorbitant extent upto 17%, while this 2nd biggest export oriented Industry is already in the severe clutches of survival in lack of basic facilities as persistently demanded from the Government for providing level playing field to the Industry.
Chairman, PTA , Sheikh Saqib Saeed Masood strongly opposed the proposed move of the Government for irrational increase of Sales Tax upto 17% under the prevailing business circumstances within the country, which would definitely bring negative repercussions/impact in the following forms :-
01. To Stuck up huge working capital of Leather Sector in the sales tax regime, while reimbursement process is unfortunately quite slow.
02. As a result, the export/working capacity of Tanners would certainly be shrinked/curtailed to the alarming extent.
03. Pace of Export of Leather Sector would also certainly be slowed down, which would certainly be repugnant to the aspiration of the Honourable Prime Minister of Pakistan, Mian Muhammad Nawaz Sharif to promote the country’s exports.
04. Further unemployment era would also be opened from Leather Sector, as presently 1 Million people (approx) are consumed in Leather Sector directly or indirectly.
05. Production cost would also be increased to render in-competitive in the international market, which is already on higher side and our member exporters are already perturbed severely to the selling end of finished leather/products duly value added in comparison with neighbour competitors.
Sheikh Saqib Saeed Masood, Chairman, Pakistan Tanners Association strongly emphasized the need in the best interest to facilitate this 2nd biggest export sector of the country to avoid consideration/contemplation for proposed increase of Sales Tax upto 17%, which would be termed fatal and completely un-acceptable by Leather Sector.
Chairman, PTA Sheikh Saqib Masood appeals to the Honourable Prime Minister of Pakistan, Mian Muhammad Nawaz Sharif as well as the Commerce Minister Engr., Khurram Dastgir Khan Sahib and Chairman, FBR, Mr. Tariq Bajwa to take immediate notice and early announcement for the “Withdrawal” of proposed increased of Sales Tax upto 17% in the supreme interest of leather exporters and save from further financial suffering of the Industry as well.
For more information, contact:
Pakistan Tanners Association
46-C, 21st Commercial Street,
Phase II, Extn., Defence Housing Authority,
Karachi-75500 – Pakistan.
Tel: +92-21-35880180, 35880184, 35899819,