Though 15 percent sales tax on ginned cotton has been withdrawn, on imported cotton it would continue. This was made clear to textile millers who met Central Board of Revenue officials in Islamabad on Friday.
"The CBR has assured us to consider our proposal to withdraw 15 percent sales tax on imported cotton," said Chairman of All Pakistan Textile Mills Association, Waqar Monnoo.
The withdrawal of sales tax was a demand of the cotton and textile sector. Textile millers import about 20 percent imported cotton. This year textile millers have booked 2 million bales.
"This sales tax on imported cotton would block our liquidity but we hope, sooner or later, it will go," said Waqar