The central executive committee of Pakistan Cotton Ginneers Association (PCGA) has rejected the proposed taxation on the cotton trade, describing it as "economic massacre of the ginners", and said that such steps would be harmful to the already destroyed industries. Addressing a meeting of CEC here on Tuesday.
PCGA chairman Masud Majeed said that PCGA leadership would convince the FBR about the negative impact of new taxation on the ginning sector and other industry. He said that recent floods, continuous load shedding of power and gas, the highest power tariff and dearness had ruined the industry and future proposed taxation would be harmful to the sinking industry.
He said that the cost of production had increased many times, which caused ouster of Pakistan from the competition in world market. "Now we are not able to compete with India, Bangladesh, Thailand, Taiwan, Malaysia and other countries. He stressed the need for taking steps on war-footing basis to meet the demand of electricity and gas. He said that the government should ensure uninterrupted supply of electricity to ginning sector in Punjab and Sindh during the current peak season.
Vice Chairman for KP and Punjab Shehzad Ali Khan said that ginners are paying one percent income tax on the sale of cotton which should be sufficient and final as per agreement between the FBR and PCGA but FBR had proposed to levy one percent income tax on oilcake (khalli) oilseed (binola) and meal and other by-products. He said that levy of income tax at each and every processing of cotton was repugnant to the norms of free trade.
Such steps would increase the prices of byproducts of cotton in the market; resultantly, it would affect the price and production of milk and other items. Industrialists would be forced to close their business rendering millions of people jobless. He suggested that the government should introduce the cheapest tariff for agriculture and ginning industry.
Tax bar association's former president Muhammad Younas Ghazi gave briefing to the CECE member of PCGA on the proposed 'reformed general sales tax' (RGST) and income tax.
The meeting was attended by Muhammad Akram, Hafeez Anwar, Mahesh Kumar, Mukhtar Ahmed Baloch, Sadaruddin , Muhammad Azam, Muhammad Farooq Ahmed, Muhammad Arif Aziz, Muhammad Asim Saeed, Amjad Farooq Khandwa, Abbas Raza, Muhammad Javed Iqbal, Khalid Javed, Jehanzeb Saeed, Muhamad Ayyub, Akhtar Javed and Haq Nawaz Khan.
The meeting demanded of Punjab Chief Minister Shahbaz Sharif to recover the looted cash of Rs 6.1 million from Khan Muhammad & Company Ginning & Pressing Industry Chichwatni. Office-bearers of PCGA would call on heads and regional chief executives of commercial banks to settle the disputes.