Cotton ginners demand tax relief and industry status from government
The Pakistan Cotton Ginners Association (PCGA) has asked the government to launch a nationwide "Grow Cotton, Save the Economy" campaign and to make its recommendations part of national policy, at a general body meeting in Multan that also elected new office-bearers. It described cotton as the backbone of the agricultural economy and vital to reclaiming Pakistan's lost position in international markets.
The PCGA called for the immediate closure of all sugar mills operating in cotton zones, the withdrawal of all taxes on cotton and its by-products, the complete abolition of sales tax on cottonseed cake and cottonseed, the removal of the fixed tax on electricity bills, and industry status for the ginning sector so that it can access electricity and gas at industrial rates. It also demanded full implementation of the Cotton Control Act.
Sohail Mahmood Harl was elected unopposed as PCGA chairman, with Kewal Mal Devnani as senior vice chairman and Mazhar Shoaib Khan Natkani as vice chairman. S M Tanveer, a former senior provincial minister and United Business Group leader, administered the oath to the new office-bearers. Sohail Mahmood Harl pledged to leave no stone unturned for the revival of cotton and vowed to continue the struggle for the removal of taxes and duties on the cotton trade.
Addressing the meeting, S M Tanveer said Pakistan's GDP had fallen to USD 450 billion and that agricultural output had declined to its lowest level. He said the population was rising fast, with 6 to 7 million births annually, while exports remained stuck below USD 30 billion, forcing the younger generation to leave the country. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh said Pakistan had fallen behind in global competitiveness because of declining cotton production, noting that electricity costs 12 cents per unit in Pakistan against six cents in neighbouring countries.
Former chairman Sham Lal Manglani said that despite adverse conditions he had fought to abolish professional tax, property tax and excise duty on the ginning sector during his tenure. Former chairman Mian Mahmood Ahmed said oil mills should also be given PCGA membership, while Dr Jasomal said cotton was the identity of the nation and that neighbouring countries impose no taxes on agriculture. FPCCI Cotton Committee Convener Malik Sohail Talat said cotton and grey cloth prices had improved compared with last year owing to the federation's efforts, with further improvement expected. Through unanimous resolutions, the PCGA, the FPCCI and other industry bodies announced a joint struggle for the survival and revival of the cotton sector, calling it vital to reclaiming Pakistan's lost position in international markets.
