Lahore - The Pakistan Tanners’ Association (PTA) has urged the government to abolish customs duty on the import of basic raw materials in the upcoming federal budget 2017-18.

In its budget proposals, PTA Regional Chairman Azam Malik demanded that the government should allow duty-free import of raw and wet blue hides, all tanning machineries, accessories, particularly the stamping foils used by the industry for up-gradation of leather which is in high fashion and demand in Europe.

He urged the government to continue the sales tax zero-rating facility to the export-oriented leather industry in true sprit with all inputs to be zero rated including packing materials and fuels and spares etc in the budget 2017-18. He further called for speeding up the disbursement of drawbacks under the prime minister’s Rs180 billion export package.

The PTA also wants a level-playing field for local exporters in world markets as the country’s exports are in constant decline. The high value-added leather sector has been providing millions of jobs to skilled and unskilled workers, he added. As per decision of ECC taken in its meeting held on April 12, 2017, he demanded the inclusion of remaining eight HS Codes for Finished Tanned Leather in SRO 62(I)/2017 as exports eligible for 5pc Drawback of Local Taxes and Levies. Leather industry has so for been deprived of PM’s incentive, as all major HS Codes in spite of ECC approval have not been notified due to very lengthy procedure of law division and ratification from cabinet.

Leather industry keeps suffering due to this procedural long delays and no authority is checking such delays in issuing the notification of ECC approved HS Codes so for. He suggested that Collectorate of Customs (Preventive) Lahore should be designated as Export Collectorate for smooth and efficient processing of duty drawback claims of exporters and there should be system to allocate separate funds for duty drawback payments rather than linking this with revenue generation of unrealistic targets.

He said that presently, an amount of over Rs300 million is lying pending at Collectorate of Customs (Preventive) Lahore on account of duty drawback payable against air-lifted consignments of leather from Lahore airport during the past one year.

He suggested that the Pakistan Tanners’ Association chairman should be included on the EDF Board so that mother industry would also be represented in the board and play vital role in the deliberation and decisions for the promotion of exports.

He said that livestock population in Pakistan is depleting very fast due to smuggling and excessive slaughtering for meat exports to Middle East countries. The situation is alarming and need immediate attention of the government. This shortage of livestock needs fresh investment in livestock farming and can also be compensated partially through imported raw material. “Live stock is not only needed by our industry as by product but is also essential requirement for public for meet protein and milk etc which is being ignored,” he added.

The PTA regional chief expressed his concerns that most of the promises of the government for support of leather sector remained unfulfilled as policies announced but never implemented. He requested the PM to intervene and take steps to save high value-added export oriented industry.

Malik also asked the government to honour its pledge to clear pending tax refunds of exporters without any delay. He said that is a matter of concern for the country that despite GSP Plus window, exports of the country are showing declining trend and related workforce is losing their jobs. By relaxing industry raw material import the government should adopt pro-export policies and ensure their effective implementation so that the country could continue its journey to development and prosperity.