Islamabad - Pakistan Cotton Ginners Association (PCGA) while rejecting the imposition of 1.5 per cent turnover tax on cotton byproducts, saying the step will forces the ginners to shut down their businesses. Despite the assurance by the Federal Board of Revenue high ups and relevant ministries, the government has not taken any step to withdraw the 1.5 per cent turnover tax on cotton byproducts, stated by PCGA President Dr Jassu Mal in a statement released here on Tuesday. Mal said that this step by FBR will immediately increase input costs of cotton farmers by Rs per 40 kg, which will further discourage the farmers. He said that cotton producers were already under serious pressure while impositions of further taxes on byproducts will further create disappointment among them, as a result, national cotton production will further decline. He said that cotton production due to various reasons on top of the government’s inaction has already declined from 15 million bales to 5 million bales and if imposition of further taxes continued within next few years cotton production will be abolished from the country. PCGA president further said that to boost up country’s exports the government should provide incentives to the sector instead of punishing the sector with the imposition of taxes. He said that as result of the decline in cotton production Pakistan was spending additional $300 million on the import of raw cotton while additional $100 million was being spent on the import of cooking oil because of non-availability of cottonseed.
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