MULTAN: The Pakistan Cotton Ginners Association (PCGA) rejected a tax on cotton seed oil and increase in tax on cotton lint in the budget, calling it against the vision of Prime Minister Imran Khan.

They announced closing down ginning factories across the country if the decision to increase the sales tax and impose new taxes were not withdrawn.

Talking to the media along with the other office bearers of the association, PCGA Chairman Dr Jassu Mal said because of the imposition of new tax and increasing the already ones, the cotton growth in the country has lowered down to negative.

He said that it seemed that the budget was based on cotton animosity as increasing the sales tax rate from 10 per cent to 17 per cent on cotton lint and imposing a new sales tax of 17 per cent on cottonseed oil will prove disastrous for the cotton industry.

“Already the cotton production has fallen from 15 million bales to a low of 5.5 million bales due to the lack of effective policies while only 450 ginning factories, out of 1,200, in the country are operational. The fresh taxes on both commodities will cut the cotton production,” he said.

He said the prices of ghee and cooking oil would increase rapidly because of this only decision of the government which would also be resulted in an increase in inflation.

He said if the government was not going to end these taxes, the ginners would have no other option but only to protest by closing their factories.

“Ministers and parliamentarians should come forward and play their role to end these taxes. The policy of ‘grow cotton and save the economy’ is the only policy which could ensure the prosperity of the farmers, end the unemployment and strengthen the economy,” he said.

Published in Dawn, June 15th, 2021