Pakistani tanners bemoan tax drawback delay

3 August 2018

Pakistan Tanners Association (PTA) Export Committee Chairman Anjum Zafar has called on government authorities to settle the issue of delayed tax refund payments for exporters selling goods via Lahore airport. He called for a resolution of the problem of no cheque-signing authority at the collectorate, which he said caused delays in the release of leather exporters’ tax refunds, which recently reached PKR450m (£2.6m).

“If tanners do not receive refund claims, they will not be able to buy a large quantity of raw hides and skins this Eid, which may cause losses to farmers, butchers and the whole supply chain of the leather industry,” Zafar said.

The Committee is especially concerned with the date of those tanners and traders involved in the skin and hide business on Eidul Azha, many of whom are reliant on the interest of tanners in buying the raw material for leather production.

“Without ample funds, the leather industry will fail to operate effectively and the whole market mechanism will be disrupted,” he said.

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