KARACHI: According to Pakistan Tanners’ Association (PTA) Chairman Muhammad Mehr Ali, the industry is in danger of collapsing because to the higher taxes and tariffs included in the budget, endangering future exports.
He claimed that the industry was finding it difficult to survive because of the government’s imposition of a 5 percent regulator charge on a variety of commodities and a 2 percent additional customs duty (ACD) on the entry of essential chemicals and crucial raw materials.
He said that the industry has been severely short of cash due to reimbursements of Rs. 2.5 billion that were stalled because of duty drawback claims, sales tax, and other levies, making it difficult for exporters to carry on with their business.
He claimed that the removal of the prior 1 percent tax and the imposition of an extra 29 percent levy had made it difficult for tanneries and other export-oriented companies to survive.
Johar Qandhari, president of the Korangi Association of Trade and Industry, emphasized the importance of offering exporters facilities in order to meet Prime Minister Shehbaz Sharif’s ambitious $60 billion export goal over the next three years. He said, “Reducing production costs is crucial to increasing exports, especially when it comes to gas, electricity, and interest rates.”
The Federal Board of Revenue’s (FBR) ongoing problem with delayed returns has made industrialists’ problems worse. “The industrial sector is facing increasing difficulties due to the FBR’s delay in payments, despite the Prime Minister’s call for the release of refunds,” he said.
