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ISLAMABAD: The value-added leather sector has urged the government to revisit high taxation rates, fragmented compliance requirements, and high production costs in the upcoming budget to fully harness the export potential of the sector.
The proposals were presented on Thursday in a meeting with Commerce Minister Jam Kamal Khan by representatives of the leather industry. The meeting discussed the sector’s export performance, competitiveness challenges, taxation pressures, market access issues, and reform proposals aimed at strengthening industrial growth and export potential.
An official announcement said that during the meeting, industry representatives highlighted that despite Pakistan’s strong livestock base, established manufacturing expertise, and export capability in leather garments, gloves, footwear, handbags, and other value-added products, the sector continues to face multiple structural constraints.
The delegation raised concerns regarding the cumulative burden arising from multiple inspections, approvals, certifications, and taxation by federal, provincial, and municipal authorities. Participants emphasised the need for a simplified and harmonised compliance framework and a one-window taxation channel to improve the ease of doing business and reduce operational inefficiencies.
