In the 7-5 month of fiscal year 2009-10, leather goods in Pakistan Exit Down 30%, India's leather goods exports grew by 30% over the same period.

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 yes Leatherwear When the value-added tax is implemented, the export of leather goods will drop by 25% again, due to heavy taxes and higher production costs of raw materials.

In the 7-5 month of fiscal 2009-10, leather and leather in Pakistan product Exports amounted to only $800 million. The expropriation of value-added tax will result in a further loss of US $150 million in export volume.

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.