Pakistan: Tax hike met with criticism by leather industry

1 July 2013

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.

Privacy Policy
We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.