The decision to increase Pakistan's general sales tax (GST) rate to 17% has been met with fierce criticism by the Pakistan Leather Garments and Exporters Association (PLGMEA).
The association has voiced its belief that exporters are already struggling to meet export commitments amid mounting legislative and operational pressures.
Reacting to the announcement, PLGMEA patron-in-chief Fawad Ijaz Khan said that the hike would "cripple businesses" and could easily lead to a significant spike in unemployment. He urged government to withdraw the decision in the interests of the industry.
In support of Khan's argument, chairman M Danish Khan highlighted the fact that leather exports were already showing a year-on-year decline.