ISLAMABAD, Dec 19: The tax authorities have asked businessmen dealing in leather exports to register themselves under Duty and Tax Remission for Export (DTRE) scheme.

An official source in the Central Board of Revenue told Dawn that the proposal was made following the demand of the Pakistan Tanner Association (PTA) for raise in the rates of duty drawback on leather export.

The official said the government was revising further the existing rates of duty drawback to bring it down to the actual value, which was seized last year following the 9/11 incident aimed at providing facilities to the exporters.

According to the official, if PTA has any problem in carrying out their businesses they should come with their proposals, which would after discussion be considered.

The decision was taken in a meeting of PTA representatives with the officials of CBR and commerce ministry, presided over by Commerce Minister Humayun Akhtar.

PTA has asked the government to raise the duty drawback by 3 per cent on a plea that same raise was given to exporters of leather garments and goods recently.

The CBR was of the opinion that duty drawback was calculated on the basis of actual payment made at the import stage and under the WTO it was not possible to give subsidy to exporters on any product.

The official said the government had made the DTRE so friendly that even the exporters allowed to claim refund of sales tax paid on gas and electricity used in the manufacturing of exported products listed under DTRE regime.

PTA further demanded that the income tax exemption certificate be increased to 12 months from the existing six months to help the leather exporters.

Following the decline in the leather exports, PTA also asked the commerce minister to reduce the rate of the export development surcharge charged from the exporters.

The minister assured PTA of considering their genuine demands in order to help boost export, added the official.