Cotton ginning factories have announced to go on strike for an indefinite period from Friday, as the ministry of textile has linked the renewal of license to payment of research cess. The decision was taken in the emergency general body meeting of Pakistan Cotton Ginners Association's (PCGA) held at Multan on Monday. Choudhry Muhammad Akram chairman PCGA presided over the meeting.
"The agricultural departments of Punjab and Sindh have refused to renew the working licenses of ginners without paying research cess and department of excise has been nominated for recovery," said Chaudhry Muhammad Akram talking to Business Recorder over the phone from Multan. He said that two years back the federal government imposed Rs 5 per bales research cess on the ginners, however ginners refused to pay side tax due to operational losses.
He said at present ministry of textile has strictly instructed to the agricultural departments not to renew the working license of ginning factories without non objection certificate (NOC) from excise department. Therefore, the agricultural departments of the provinces have refused renewal applications and forcing for payment of last two years' cess to the excise department, chairman said.
"We are not in a position to pay Rs 5 cess of last two years, therefore we have decided to go on strike for an indefinite period from August 1, as our working licenses have expired on July 30," he added. He said that only few of ginners are paying research cess, who have gained some extra benefits from the government under clean cotton programme.
"At present, over 122 ginning factories have started operation across the country, while in the peak season over 600 factories would resume working," he added. The operational factories would close down their operation from next Friday and would not purchase the phutti from the growers, he said.
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