Latest news with #PakistanTannersAssociation
Business Recorder
a day ago
- Business
- Business Recorder
Pakistan leather industry seeks cut in import duties on chemicals
Pakistan's leather industry has proposed lowering of customs duties on the import of chemicals used in leather manufacturing, saying it will help make the sector regionally competitive and viable, it was learnt on Wednesday. Hamid Arshad Zahur, Central Chairman of the Pakistan Tanners Association (PTA), proposed to reduce customs duty from 20% to 16%, and Additional Customs Duties (ACD) from 4% to 2% across all chemical imports. The development comes as Muslims around the world are to celebrate Eid-ul-Adha this week. In Pakistan, the first day of Eid will fall on Saturday, June 7. According to Zahur, around 40% of Pakistan's total leather production is sourced through sacrifice of animals during Eid-ul-Adha. Sharing statistics, PTA central chairman said tanners received around 0.7 million animal hides, including 4.5 million goats, 2.5 million cows, 0.5 million sheep, and 25,000 camels last year. The total value of the collected hides was estimated at Rs10 billion, he said. Zahur further stated that around 25% of the hides, worth approximately Rs4 billion, were spoiled due to 'mishandling and the failure to preserve them with salt in a timely manner'. 'Tanners have been urging both the federal and provincial governments to establish proper abattoirs to prevent the wastage of hides,' he said. 'The country lost hides worth Rs4 billion due to improper handling, which constitutes 40% of total local production.' PTA central chairman emphasised that the government should establish centralised slaughterhouses for carrying out religious sacrifices similar to other Muslim countries such as Saudi Arabia, Malaysia, Türkiye, Indonesia, and others. In its budget proposals, PTA requested to keep the export sector under the original Fixed Tax Regime, but to increase the turnover tax from 1% to 1.5% to increase government revenue. Eid-ul-Adha 2025: trade peaks at Asia's largest cattle market in Karachi The leather sector is normally working at a 4-8% profit margin in general and hence a 1.5% turnover tax will actually be a net 25% tax on profit and in line with the Federal Board of Revenue's (FBR) revenue generation targets, according to the PTA. Zahur urged not to bring the export sector under the final tax regime. He opposed the proposal to apply sales tax at the import of raw materials under the Export Facilitation Scheme (EFS) in the next budget. 'This step by the FBR/Ministry of Finance will totally negate the basic principal of no duty, no drawback under which the EFS was originally developed,' he said. 'One wrong has been done last year by imposing sales tax on domestic sales under EFS and it will be a second wrong to impose sales tax on import of raw material under the EFS, going forward. 'This will lead to a cash flow crunch, defeat the very purpose of the EFS and be detrimental in increasing the exports any further,' PTA official said. He urged the government to bring the EFS back to its original form as on June 30, 2024, whereby purchase of domestic and imported raw materials under EFS was exempt from any duties or taxes. Meanwhile, PTA suggested to bring down the rate of sales tax down to 17% in the next budget from the current 18%. It also proposed minimum tax threshold for salaried individuals at Rs1.2million per annum.
Business Recorder
4 days ago
- Business
- Business Recorder
Preferential tariffs to help bolster Pak-Turkiye trade: CG
KARACHI: The preferential tariffs between Pakistan and Turkiye would help bolster trade in the leather sector between the two countries, said the Consul General of Turkiye, Cemal Sangu, during a meeting with a delegation of leather manufacturers and exporters. 'Preferential Trade Agreement is in its final stages between Pakistan and Turkiye,' Sangu said, advising the tanners' delegation to look into it thoroughly by contacting the Ministry of Commerce and seeking preferential tariffs in order to increase trade between the two countries in the near future. A delegation of Pakistan Tanners Association (PTA) comprising its Central Chairman Hamid Arshad Zahur, Chairman (Southern Zone) Danish Aman, Vice Chairman Yousuf Shafiq, along with other prominent members, attended the meeting. Murat Ozmen, Commercial Attaché of Turkiye, was also present at the meeting. During the discussions, the PTA Chairman extended an invitation to Cemal Sangu and Murat Ozmen to attend the Pakistan Mega Leather Show (PMLS) scheduled for January 2026 in Lahore. The invitation encouraged Turkish participation in exploring Pakistan's approximately USD 1 billion leather market. Consul General said Pakistan and Turkiye are two countries but one nation, and during recent conflicts with India, we extended support to our brothers and sisters because Turkiye has never forgotten the help extended by the Pakistani people during the Khilafat Movement. Which is why, he said, this bond is highlighted in school celebrations. During the meeting, Danish Aman expressed deepest regards for all the support received from the people and the government of Turkiye during the recent standoff with India and the successful completion of Operation Bunyaan un Marsoos. Turkiye and Pakistan have a long history of trade relations, especially in the leather sector, with Turkish manufacturers of chemicals, tanning machinery, domestic raw materials, double-face and shearling leathers exporting their products to manufacturers in Pakistan. At the same time, finished and semi-finished leathers as well as value-added products like leather garments, leather gloves, and footwear are being exported to Turkiye as well. Both sides stressed the need to enhance mutual trade between the two countries by exploring each other's markets and establishing frequent contacts via visits of trade delegations. Such visits should open up the possibilities of joint ventures in the near future. Copyright Business Recorder, 2025
Business Recorder
15-05-2025
- Business
- Business Recorder
No one can undo Sino-Pak ties: Chinese CG
KARACHI: Yang Yundong, Consul General of the People's Republic of China said that Pakistan and China has enduring friendship so no one can undo our relation. He said this while talking to a delegation of Pakistan Tanners Association, South Zone, headed by its Chairman Dr Danish Aman, at the Consulate premises. On the occasion, Hamid Zahur, Chairman PTA, Central, Yousuf Shafiq, Vice Chairman, along with other senior members were present. The meeting was held to express heartfelt congratulations and to celebrate the Chinese government and people for their unwavering support and solidarity with Pakistan during recent tension with India. During the meeting, both sides held in-depth discussions on bilateral relations, exploring opportunities for joint ventures, particularly in the leather industry. Special attention was given to the current restrictions on import of certain chemical essential to leather manufacturing with view toward finding mutually beneficial solutions. Dr Danish Aman said that the Pakistan Tanners Association is looking forward to continued collaboration and strengthening of economic and industrial ties between the two brotherly nations. In the end a memento were presented to the Consul General. Copyright Business Recorder, 2025
Business Recorder
01-05-2025
- Business
- Business Recorder
Korangi industrial area: Sindh committed to improve infrastructure: minister
KARACHI: Sindh Minister for Industries and Commerce Jam Ikramullah Dharejo has said that Sindh Government is committed to improve infrastructure in Korangi Industrial Area like roads, street lights, drainage system and security system to attract international foreign buyers. This he said as a chief guest at a lunch, here at Pakistan Tanners Association South Zone office, he said that we had made friendly industrial policy and the issues faced by the leather sector would be resolved on priority basis. Chairman PTA Danish Aman briefed provincial minister for Industries and Commerce Jam Ikramullah Dharejo about the problems faced by the leather sector. Secretary Industries and Commerce Muhammad Yasin Shar Baloch, Danish Aman Chairman PTA (S.Z), Yousuf Shafiq Vice Chairman, Hamid Zahur Chairman PTA-Central, Ejaz Ahmed Sheikh Senior Member, Aziz Ahmed Ex-Chairman Infrastructure and others were also present. Copyright Business Recorder, 2025
