January 03, 2008	Thursday	Zilhaj 23, 1428

KARACHI, Jan 2: Pakistan Leather Garments Manufacturers and Exporters Association (Plgmea) has condemned the Federal Bureau of Revenue for taking a unilateral decision of slashing duty drawback rate on export of leather garments from 3.22 per cent to different rates ranging from 2.38 per cent to 1.59 per cent.

In a statement issued on Wednesday, Plgmea chairman Fawad Ijaz Khan said the industry was not satisfied with even 3.22 per cent rate and was demanding higher rate in the range of 5.41 per cent, but the FBR, besides lowering the rate also segregated the rates to various types of leather garments goods.

Our competitors from India and China, he said were getting single slab rate for all categories of leather garments, “but we have failed to understand the wisdom of FBR on introducing different duty drawback rates.”

During last one year, he said Plgmea was inter-acting with the FBR officials, including chairman Mohammad Abdullah Yousuf, Khalid Mahmood chief duty drawback, Munir Qureshi chief collector of customs (south) and director Input-Output Co-efficient Organisation (IOCO).

In a recent meeting with chief collector of customs, Mr Khan said it was decided that IOCO would sort out differences with Plgmea and fresh survey was likely to be conducted to get data currently not available to determine new duty drawback rate.

Unfortunately, he said no meeting took place, and without taking the Plgmea into confidence, the FBR has arbitrarily slashed duty drawback rates on export of leather garments.

The Plgmea chief said it was in the charter of IOCO that duty drawback notification would only be issued after getting consent of concerned trade body.

Mr Khan said leather garments industry was struggling for survival and exports have declined by 23 per cent during June-July 2006-2007 as compared to June-July 2005-06.

Exports were showing signs of improvement during current year and decline was reduced to six per cent during July-Oct 2007 against July-Oct of 2006.

He urged the finance and commerce ministers and chairman FBR to withhold implementation of this reduction in duty drawback rates on export of leather garments till consent is achieved between Plgmea and IOCO.