FBR has withdrawn sales tax on "Binola" and introduced Rs.7/40kg tax-PCGA Chairman

MULTAN, Feb 3rd: Chairman of Pakistan Cotton Ginners Association (PCGA) Mian Mehmood Ahmed has said that Federal Board of Revenue has withdrawn the 2% sales tax on edible oil and  decided to recover Rs.7 per 40 kg tax on rapeseed (binola)and a new SRO would soon be issued in this regard. Addressing a press conference here alongwith Mr.Talat Suhail , Abdus-Subhan and Malik Altaf Arain, He said that SRO-188 had ended in April ,2018 and it cannot be revived. He said that majority of PCGA member are agreed to pay the tax and many of them had already cleared their dues.Mian Mehmood Ahmed suggested that Government should encourage and patronise the edible oil industry because it was the need of 100 percent people.What a pity that Government was patronising the handful of Sugar Mills Mafia comprising on Zardari, Sharifs,Makhdooms and Tareens etc.Government was pay Rs.10.75 per kg subsidy of these political stalwarts. PCGA chairman said that Sugar industry was damaging the metalled roads besides fleecing the consumers and huge amount of Rs.80 billion per annum was being spent on the repair of the roads damaged/destroyed by overloaded tractor trollies. PCGA chairman hailed the Government decision to separate revenue collection administration from tax policy formation to promote equity and transparency in the tax machinery.Following the decision to take way policy formation powers from the revenue body, the Federal Board of Revenue’s (FBR) role will only be confined to tax administration and collection.He said that It was also a good decision that number of taxes are being reduced to eight from 46 and discouraging the indirect taxation. Mian Mehmood Ahmed replied to a question that he was not in favour of levy of customs duty or anti-dumping duty and sales tax on the import of cotton in December or January when the season has been completed in Sindh. Mian Mehmood Ahmed said that State Bank of Pakistan should  grant incentives to ginners and bailout package so that they could stand on their own feet. In his address out-going.He further said that he tried his utmost to resolve the problems confronted by the ginners and  to achieve our objective.However, we would resolve all pending issues with the help and coordination/cooperation of other member. He said that Pakistan is the fourth largest producer of cotton after China, India and the United States and has about 8.7 percent share in world's cotton production, the delegation said. Mian Mehmood Ahmed said that ginning industry is considered to be the backbone of the textile sector and plays a significant role in the economy. Though Pakistan produces best quality cotton, but ginning factories get poor quality and contaminated cotton due to poor transportation and storage facilities and unskilled handling and harvesting.