Leather exports decline 11pc

LAHORE: The finished leather exports have declined by 11.36 percent during the outgoing fiscal year 2015-16 as compared to 28 percent decline the leather exports registered in 2014-15, Pakistan Tanners Association (PTA) said on Tuesday.
The finished leather of around 21.10 million square meters was exported in 2014-15 as compared to around 28.34 million square meters leather exported the corresponding year.
Chairman PTA Muhammad Musaddiq said same declining trend has also been observed in leather garments, where exports declined by 10 percent and other leather produce by 24 percent.
The PTA chairman said, “Cost of doing business in Pakistan has increased by 12 percent due to unnecessary burden of taxes imposed on leather sector by the government which customers are not willing to pay.”
He said the liquidity problem of the leather industry due to pending customs duty drawback claims, sales tax refund claims and income refund claims is hampering the business activities of the industry.
Resultantly, the export orders are being cancelled, which is clearly reflected in the declining trend of leather exports.
“The vital event of leather Industry, Eid-Ul-Azha, is around the corner, which is specific for purchasing raw hides and skins for meeting yearly export,” he said.
The PTA chairman demanded the prime minister and federal minister for finance, to look into the matter and take measures for, “at least immediate release of pending customs duty drawback claims, sales & income tax claims to leather industry without further delay.”
“Otherwise the Industry would unfortunately be in more trouble and would face more declining trends in upcoming months,” he added.