KARACHI: Pakistan Tanners’ Association (PTA) Chairman Muhammad Mehr Ali has said that the additional burden of taxes and duties in the budget has put the industry on the verge of collapse, thus jeopardising future exports.
He said the government had imposed a 2 per cent additional customs duty (ACD) on importing key raw materials and vital chemicals and a 5pc regulator duty on various items, making it difficult for the industry to survive.
He said the industry had been facing an acute shortage of liquidity as refunds of Rs2.5 billion were stuck on account of sales tax, duty drawback claims, and other taxes, thus creating problems for exporters to continue their operations.
He said the imposition of an additional 29pc tax by withdrawing the previous 1pc has created a survival issue for not only tanneries but also for the entire export-oriented industries.
Meanwhile, Korangi Association of Trade and Industry President Johar Qandhari stressed the need to provide facilities to exporters to achieve Prime Minister Shehbaz Sharif’s ambitious $60bn export target over the next three years. “To increase exports, it is essential to reduce the cost of production, especially the prices of electricity, gas, and the interest rate,” he stated.
The persistent issue of delayed refunds from the Federal Board of Revenue (FBR) has exacerbated the challenges faced by industrialists. “The Prime Minister has called for the release of refunds, but the delay in payments by the FBR continues to increase difficulties for the industrial sector,” he noted.
Published in Dawn, July 25th, 2024
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