KARACHI: Chairman of the Pakistan Tanners Association (PTA), Muhammad Mehr Ali, has called on the federal government to urgently address the pressing issues facing the leather sector, warning of a continued decline in exports if immediate action is not taken.
In a joint appeal with senior PTA members, the Chairman urged the Federal Commerce Minister to intervene and provide a level playing field for this critical value-added industry.
Key Demands by PTA:
- Abolition of Health Quarantine Certificate Requirement: Termed irrational for export of finished leather, which is already properly valued.
- Removal of 2% Additional Customs Duty (ACD): On import of cow and buffalo hides/skins (HS Codes: 4104.1100 & 4107.9200), which remain excluded from the 5th schedule—unlike sheep and goat wet blue leather, which enjoys exemption.
- Finalization of Duty Drawback Rates: For finished leather, still pending with IOCO despite long delays.
- Release of Pending Financial Claims: Including rebate claims, sales tax refunds, and income tax refunds—notably deferred sales tax claims totaling approximately Rs. 2.17 billion.
- Restoration of Concessional Energy Tariffs: Urging the government to extend reduced electricity and gas rates to export-oriented industries, including the leather sector.
Mehr Ali cautioned that without swift resolution, the sector—already facing an alarming drop in exports—could suffer further setbacks.
