PTA demands finished leather’s inclusion in new DLTL scheme

LAHORE: Pakistan Tanners Association (PTA) has demanded the caretaker federal minister for commerce and its secretary to include finished leather in the new Drawback of Local Taxes and Levies (DLTL) scheme for 2018/21.

In a letter to the ministry of commerce, PTA Chairman Amanullah Aftab said that the value-added leather has not been included in the Drawback of Local

Taxes and Levies, which is unjust with the leather industry.

The Pakistan Tanners Association had already submitted a detail presentation to the commerce secretary for early inclusion of this specific item in the exports package and incorporation it at the time of issuance of SRO / notification.

The tanning industry of Pakistan is fully competent and capable of producing all types of leather, including printed leather, foiled leather, patent leather, etc.

Pakistan is holding number two position after Italy as far as quality of leather is concerned, he said.

Aftab said that the 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.

The leather industry is the second biggest export-oriented industry in terms of significant contribution to the country’s GDP, besides finished leather (value-added leather) had the export share of around 38.5 percent of the total leather exports of Pakistan.

It was recorded at $918.131 million for the year June-June 2016/17.

The Pakistan Tanners Association chairman said that the dyed and printed fabrics for textile sector are included in the new Drawback of Local Taxes and Leviesscheme for the next three years, while the finished leather is deprived of the incentive, which is the

similar product / commodity with necessary innovative value addition from raw skins to finished leather and becomes eligible for exports.

If the finished leather was not included in the new Drawback of Local Taxes and Levies scheme, the exports of finished leather would further decline, he said.