Call to include finished leather in tax scheme

14 June 2018

The Pakistan Tanners Association (PTA) has called on the Indian authorities to include finished leather goods in its next round of tax subsidies.

The Federal Minister for Commerce is set to unveil the next Drawback of Local Taxes and Levies (DLTL) scheme for 2018/21, and the PTA chairman bemoaned the fact that dyed and printed fabrics for textile sector are included in the new DLTL regime until 2021, while the finished leather is not.

The PTA reminded the minister that it had already submitted a detail presentation to the commerce secretary aiming for early inclusion of finished leather in the scheme. Under current rules, finished leather made of cow, buffalo, sheep and goat skins is highly value-added and finished leather is being sold to high value branded shoes.

PTA Chairman Amanullah Aftab pointed out that Pakistan’s leather industry represents the country’s second biggest export-led industry, contributing around $918.131 million for the year June-June 2016/17. A closer look at that figure reveals that finished leather represents a share of around 38.5% of the total leather exports.



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