Pakistan Cotton Ginners Association (PCGA) Chairman Chaudhry Muhammad Akram has declared the Federal and provincial budgets the anti-farmers, cotton industry and agriculture, and demanded of the government to lift the withholding tax. Addressing a press conference here on Tuesday, he demanded of Federal Bureau of Revenue (FBR) to consider the cotton industry as zero industry and remove the sales tax.
"The set target of cotton of 14.1 million bales could not be achieved due to sowing of cotton on a very low scale", he further said. He termed the shortage of water, electricity and diesel as the main reasons for this, and further warned that due to prevailing situation, the pesticide crisis might spring up at any time.
The PCGA Chairman said that China had stopped the shipment of cotton from June 20, and criticised the government's failure in controlling the mealy bug and other viruses. "Fields are getting destroyed and the government is doing nothing for the welfare and development of agriculture," he said.
He further said that many types of BT cotton had been spread in the market without any verification, which had removed the difference of original and counterfeit seeds. "If there would be no cotton, the industry would also demolish," he warned and demanded of the Prime Minister to save the country from the crisis by saving the agriculture from being destroyed.
Referring to the FBR directive to the ginners to pay one percent sales tax, he said the ginners were already paying more than 10 percent of their income as a tax and they could not afford any other taxes.
He pointed out that the textile mills had received Rs 70 million from the ginners, but had not paid to the FBR, hence the FBR, instead of asking the ginners should ask the millers to pay. To another question, he said that one percent fixed tax in the name of workers welfare fund had been suggested in the budget, should be withdrawn.
"Besides, imposition of 10 percent withholding tax on electricity bills is unjustified as our taxation number is written on our bills and it is better if the government finds new taxpayers instead of imposing another 10 percent withholding tax." Citing examples of India and China, the PCGA Chairman said Pakistan was far behind these countries in agriculture due to their farmer-friendly policies.
He said: "The production of cotton in India has reached from 14 million bales to 30 million bales whereas that of China it has reached from 22 million bales to 40 million bales, but in our country, the situation is just the reverse."
He said that the last year's target could not be achieved, and apprehended that this year too there was no hope of achieving the target. He 99 percent ginners were not paying the rupees five additional fee under Clean Cotton Programme, and threatened to close down their factories if the fee was charged on the services. He further said that Sindh and Punjab government was being asked to receive the fee on services, which is condemnable.
"Ginners are bound to take the no objection certificate (NOC) from the excise office which should be withdrawn," adding that if the decision was not be taken back, then "we will close our factories". He said: "Under this system, corruption would increase as the NOC issuing officers will oblige their favourites."
He further said that there was nothing in the Federal or provincial budgets for the farmers. "The use of DAP is declining, which results in the low per acre production of crops. "The crop production in the countries, using latest agriculture methods, has reached from 30 to 35 maunds per acre whereas in Pakistan, our production has reduced to 17 maunds per acre, which is an alarming situation," he said.He said that Clean Cotton Programme should be open so those farmers could directly get the benefits, and threatened that "we will close our factories if our demands are not fulfilled."