Pakistan Cotton Ginners Association (PCGA) has rejected the federal budget for the financial year 2024-25 describing it as cruel, tyrannical and alleged that the cotton ginning industry is being destroyed under a well planned conspiracy.
More tax burden has been put on ginners in the budget. Business routes have been closed for them by imposing tax on cotton cake and other cotton related products. PCGA Chairman Chaudhry Waheed Arshad while addressing the hurriedly called press conference her today said that the government's steps would promote illegal and undocumented business will be boosted and.
Undocumented economy will be boosted by the measures taken in the budget under the pressure of International Monetary Fund(IMF). Cotton ginning industry is currently paying 11 different types of taxes and there was no jusrtification to impose more taxed on the already hard-pressed industry.
Press Conference was also joined by Vice Chairman PCGA Rana Waseem Hanif,Former Chairmen Haji Muhammad Akram, Amanullah Qureshi, Sohail Mehmood Haral, Mazhar Shoaib Nutkani and Khawaja Muhammad Arshad.
Chairman PCGA said that our association which represents 1200 ginners and millions of cotton growers strongly protest and condemn the imposition of new tax on oil-cake( Khal). PCGA wants to promote documented economy and do business on actual invoice.
The imposition of heavy taxes on cotton industry is tantamount to break ginners as well as growers backbone,This is unfair, unlawful and unethical. This step would not help in establishment of Documented economy but it would provide opportunities to corrupt, dishonest elements and tax-evaders.
He further said that these measures will not help in increasing the revenue instead of creating troubles for the honest tax-payers .
Vice Chairman Rana Waseem Hanif and former Chairman Sohail Mehmood Haral said that Government has shut the doors for investors who want to invest in cotton industry .They warned that Government would have to spend billion of dollars to import cotton to run its textile and spinnig industry while it had no reserves to repay foreign loans instalments. They said that free business environment has ended due to high and unfair taxes . Increasing cotton cultivation is the need of the hour for agricultural, industrial, economic development. Cotton is the only cash crop which is being destroyed.
PCGA has reiterated its demand to provide interest free loans and cheaper elerctricity to ginners for their survival. PCGA suggested that similar concessions and facilities be provide to ginners like Textiles because Ginning is a part and parcel of spinning as well textile industry.
PCGA has welcomed the Import duty on cotton import . This will provide financial and economic security to Pakistani farmers. Recent budget measures have hindered the sale of document economy. and illegal business will flourish.
The increase in cotton production and cotton-related businesses are being discouraged under a well-thought-out conspiracy. Despite being an agricultural country, instead of promoting an agro-based economy, there is a conspiracy to destroy the only cash crop, cotton, by continuously harming it.
The government and the authorities should take immediate notice of the current situation and ensure the financial and economic security of the farmers who play the backbone of the country's economy.
