KARACHI, Oct 13: The Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA) has urged the Central Board of Revenue to allow retrospective implementation of duty drawback SRO 698(I)/2002 for leather garment exports.

In a statement issued here on Wednesday, PLGMEA Chairman Fawad Ijaz Khan said the CBR had slashed duty drawback rates on exports of leather garments drastically in 2002.

During the year 2002-03, the leather garment industry was in deep crisis and exports fell sharply. The PLGMEA took up the case with the CBR and finally the tax authorities raised the duty drawback on exports of leather garments and issued the SRO 698(I)/2002 on October 9, 2004.

Mr Khan said the PLGMEA demanded that these rates should be increased with retrospective effect from July 1, 2002 when the drawback rate was reduced. The issue was raised with various government authorities on numerous occasions during the last two years but its genuine demand was turned down by the CBR on the ground that there was no precedent for increasing rates with retrospective effect.

However, now the CBR increased the duty drawback rates on PSF-based products for textile industry vide SRO 846(I)/2004 issued on October 4, 2004. The CBR has also allowed retrospective implementation of the SRO from July 1, 2004.

Therefore, Mr Khan said this precedent could be used for accepting the just demand of the leather garment industry also. The Leather garment industry is one of the top five biggest export industries of Pakistan, he added.