ISLAMABAD: The National Assembly’s Standing Committee on Textile Industry has recommended the government to fix the minimum intervention price of cotton on both lint and seed at Rs3,000 per 40kg for 2015-16 crop after evaluating the cost of production.

The committee on Wednesday proposed that input items including General Sales Tax (GST) on fertiliser, pesticides, energy and fuel should be reduced to zero per cent to protect the farmers.

The committee, chaired by Khawaja Ghulam Rasool Koreja, strongly recommended a ban on the imports of quality cotton yarn, particularly from India, since Pakistan itself produces it.

It recommended that the sales tax on value-added textile items should be withdrawn.

Secretary Textiles Amir Khan Marwat informed the committee that discussions have been held with stakeholders and ministries on the issue of intervention price of cotton, and a draft suggesting the price for the current fiscal year (2015-16) would soon be submitted to the Economic Coordination Committee (ECC) of the Cabinet for approval.

The meeting was also attended by Minister for National Food Security and Research, Sikandar Hayat Khan Bosan, chairman of Trading Corporation of Pakistan, parliamentary secretary for Textile Industry, officials of the Federal Board of Revenue (FBR) and representatives of value-added textile forum and other officials.

Published in Dawn, August 20th, 2015

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