The Minister for Textile Industry, Mushtaq Ali Cheema, held a meeting with the representatives of Pakistan Cotton Ginners Association (PCGA) here on Tuesday to discuss the issue of Rs 5 tax per maund for clean cotton, which is being imposed on the ginners.
The minister said that the government was creating a real culture among the growers for producing contamination-free cotton, which is very vital for the development of textile industry. Federal Secretary Masood Alam Rizvi and four representatives of the association participated in the meeting to discuss the ginning issues.
The minister emphasised the importance of the textile sector, which alone contributes more than 60 percent to the exports of the country. Ministry sources said that the meeting was meant to hear the grievances of ginners regarding the issue of Rs 5 tax per bale of clean cotton. This money would be spent on the clean cotton programme, which would increase its value and demand.
The government has spent millions to promote the clean picking methods of cotton through Agriculture Departments. The government is paying Rs 50 per maund to the growers picking contamination-free cotton.
The minister urged the ginners that they should cooperate with the government in the contamination-free cotton programme for which the ministry has been already working in collaboration with the provincial governments. The efforts of the government have resulted in increase of contamination-free cotton, he added. The step has been taken to support the textile sector in the time of crisis. Now the government can not regularly bear the expenses and wants to shift this liability to the textile sector to devise its own means. The ministry of textile therefore is looking forward to imposing tax of Rs 5 per maund of clean cotton on the ginners to meet the clean cotton programme expenses.
The minister urged the ginners to help the government in its programme for clean cotton and sought their proposals and suggestions to resolve the issues of ginning. Talking to Business Recorder, the ginners said that they have asked the minister 15 days' time to come up with their suggestions on the proposed tax.
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