Leather industry calls for export taxes to prevent collapse

Bid to stem China domination JOY ORLEK SOUTH AFRICA’S automotive leather industry has called for the imposition of tax tariffs on raw material exports to protect the leather and automotive leather industries from systematic collapse. Neithard Graf Von Durckheim of Bader SA, an automotive leather producing company, says the lack of tax tariffs on raw material exports is killing the industry. He said automotive leather production had shrunk as clients wanted raw materials only. Most of the company's international customers have moved to China, which has become dominant in the leather industry, he said. According to BuaNews, the North West government has agreed to approach the Department of Trade and Industry to find ways to boost the automotive leather sector. Bader SA has been supplying big motor companies, including BMW, Mercedes Benz, Volkswagen and Daimler Chrysler, with leather for car seats and South Africa has been the second most reliable supplier of leather to the automotive leather industry in the world until now.