In the 7-5 months of fiscal year 2009-10, the export of leather goods in Pakistan dropped by 30%. In the same period, India's leather goods exports increased by 30%.

The Pakistan government should therefore consider fixing the growth rate of leather industry at 0%, just like the fixed consumption tax.

In the 2008-09 fiscal year, Pakistan's leather export revenues amounted to US $1 billion 200 million.

Experts believe that due to high production costs, Pakistan's leather exports were knocked down by its close neighbor competitors, so the leather Department is close to collapse.

From this point of view, if the value-added tax is applied to the leather sector, the export of leather goods will drop by 25% again, which is due to heavy taxes and higher production costs of raw materials.

　　在2009-10財年的7-5月份，巴基斯坦的皮革和皮革產(chǎn)品的出口額僅達(dá)到8億美元。隨著增值稅的征用，將導(dǎo)致出口額再次損失1.5億美元。

The government's implementation of such a directive has imposed an additional burden on the export sector, which will have a negative impact on the leather sector.

The leather export department has exempted taxes from all over the world and has no intention to levy taxes in any country.

So far, the government of Pakistan has not provided any beneficial measures to the leather Department.

On the contrary, the India government has taken timely measures for the leather sector, for example, announced a relief policy of 4 billion rupees in the tenth leather projects, announced a 9 billion 130 million rupee relief policy in the eleventh leather projects, and thus promoted the export of leather products by the country by 28%.

According to an industrial insider, the government of India provided 2 billion 560 million rupees for their leather sector based on modernization, capacity building and better infrastructure plan.

On the contrary, the government of Pakistan ignored the recommendations of the leather sector and had a negative impact on business operations.

The main competition of Pakistan leather department comes from Turkey and Bangladesh.