ISLAMABAD, Nov 11: The Central Board of Revenue on Thursday allowed zero-rated the supply of ginning waste to facilitate ginners. The decision was announced through a sales tax notification SRO910 issued on Thursday , amending the budgetary notification of SRO500 of 2004.

A sales tax official said that ginning of cotton was a taxable activity. The ginning waste consisting of mud and wooden remains of cotton flower also falls with the ambit of a taxable supply. And the tax authorities were collecting 15 per cent general sales tax from the suppliers.

According to the official, the revenue from the supply of ginning waste was negligible. It was an irritant as the ginner was required to account for its stocks, which was not possible due to nature of the process. Besides, the ginning waste was used for burning by the labourers working in ginning factories or by the brick kilns.

The official said that to do away with the practical problems being faced by the ginners, the Central Board of Revenue on the representation from the ginners association has allowed zero-rated the supply of ginning waste.