By Zahid Karani
KARACHI: The Pakistan Tanners Association (PTA) has expressed optimism over the upcoming federal budget, hoping for an export-friendly framework that could help the leather sector achieve $2 billion in exports under the Uraan Pakistan program. PTA Chairman Hamid A. Zahur outlined key budget proposals and raised concerns over recent tax policy developments impacting the industry.
The association has recommended that the export sector remain under the original fixed tax regime, while proposing an increase in turnover tax from 1% to 1.5% to boost government revenue. Zahur urged the government to avoid shifting exporters to the final tax regime, warning that doing so would invite unnecessary harassment by Federal Board of Revenue (FBR) officials.
He strongly opposed reports suggesting that Export Facilitation Scheme (EFS)-registered companies may be required to pay sales tax on imported raw materials under the new budget. Such a move, he argued, would undermine the “no duty, no drawback” principle that forms the basis of the EFS. “One wrong was made last year by imposing sales tax on domestic sales under EFS.
