PCGA firm on its demand for withdrawal of withholding tax

16 Aug '11

2 min read

Pakistan Cotton Ginners Association (PCGA) is firm on its decision to carry on the strike and has vowed to not to resume raw cotton (Phutti) purchase from the cultivators till the SRO of collecting 3.5 percent withholding tax is rolled back.

PCGA has stated that the ginners are not willing to act as tax collection agents and maintain records of others.

PCGA Vice Chairman Shehzad Ali Khan and Former Chairman Shaikh Muhammad Saeed have said that the SRO released by the Federal Bureau of Revenue (FBR) empowers the ginners to collect 3.5 percent withholding tax from agents when they purchase raw cotton from them.

Besides, the SRO also authorises the ginners to examine the ownership papers of the cultivators, certificate and other documents related to land holding which have been issued by Patwaris and deposit a tax of minimum of PKR 87 billion in national treasury.

PCGA said that the ginners neither have enough employees to examine these documents nor have the expertise needed to distinguish the original documents from the forged ones.

Mr. Shehzad Ali Khan said that pursuant to a deal between the PCGA and FBR, the ginners are currently paying one percent turnover tax on cotton sale without reaping any additional benefits.

Fibre2fashion News Desk - India

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