PTA, Customs To Jointly Work On Refunds Of Leather Exporters

PTA, Customs to jointly work on refunds of leather exporters

LAHORE, (UrduPoint / Pakistan Point News - 28th Nov, 2016 ) : Pakistan Tanners Association (PTA) and Pakistan Customs have agreed to evolve a comprehensive mechanism to release the refunds of leather exporters.

Addressing a meeting of PTA North Zone, Customs Collector Zulfiqar Younas assured the leather exporters of early clearance of their all pending rebate claims on priority. Long delay in the payment of refunds was affecting the industry, he added.

The collector pledged to provide all necessary facilities to the Lahore-based exporters and importers, besides removing hurdles to motivate them to do their business through Lahore Dry Port. Pakistan Customs, he said, was introducing the business-friendly policies for encouraging the business community to struggle hard for the promotion of exports, he mentioned.

PTA North Zone Chairman Azam Malik said the second largest industry was facing cash flow crunch and urged the government to help steer it out of financial crisis. He claimed that the leather industry employed over one million people and earned foreign exchange of around $1 billion, but non-payment of its exporters' refunds was hampering its growth.

The FBR, he said, was bound to release refunds within 45 days. PTA Chairman Anjum Zafar claimed that over Rs 250 million on account of sales tax and duty drawback refunds was outstanding. This had created a liquidity crunch for the export-oriented industry, he added.

He also demanded the government should take steps to reduce cost of doing business by 8-10 percent for finished leather exports. He suggested that refund of all taxes, levies, duties, surcharges etc.

should be paid to exporters. If through DLTL (Draw Back of Local Taxes and Levies), then refund must be 100 percent through banks on realization of proceeds. He demanded that FBR and Customs Department should be taken on board to implement original rate of duty drawback as per recommendation of IOCO (Input-Output Conformance) and import of raw material might be allowed at zero-rate instead of present three percent.

He called for taking up matter of depleting livestock with concerned departments and to take steps for revival of livestock and formulating an effective policy.