Home / Knowledge / News / Textiles / Ginners strike enters 19th day
Ginners strike enters 19th day
23
Aug '11
For 19th day in succession on Tuesday, around 1200 ginning factories stuck to their decision of not buying raw cotton (Phutti) from the cultivators till the SRO of collecting 3.5 percent withholding tax is rolled back.

Meanwhile, the Pakistan Cotton Ginners Association (PCGA) has said that both President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani have given assurance of early redressal of the grievances of the ginners.

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. The SRO also authorizes 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 has stated that the ginners are not willing to act as tax collection agents and maintain records of others. It 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.

Explaining the reasons for the strike, Mr Masood Majeed, Chairman, PCGA told fibre2fashion, “Previously withholding tax was exempt for the agricultural produce, but now the exemption is only for the agricultural producer; not the produce. This withholding tax is just like an advance income tax. It will be refunded if their income is below a certain amount”.

He continued, “But the problem is that the procedure is so cumbersome that the ginners have to deduct the tax and deposit in the national exchequer and keep the records. This tax is not on the ginner, but still he has to keep records for five years and also records of farmers to prove that they are the original farmers, after which only tax will not be imposed”.

He added, “In the future, if there is a problem with the certificate from the farmer and if the Government cannot locate that farmer, the tax will have to be paid by the ginner with the fine, which according to us is not the correct policy”.

“Definitely, we understand that it is affecting the Pakistan cotton ginners as well as farmers, however the ginners are not willing to be just withholding agents, as they will be penalized without any benefits”, he concluded.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 20th Jul 2017

Provide safety net for cotton growers: Congress to Trump

A bipartisan Congressional coalition has called attention of...

Courtesy: ITMF

Textiles | On 20th Jul 2017

ITMF'17 themed on tech, trade, climate in disruptive times

The International Textile Manufacturers Federation (ITMF), an...

Textiles | On 20th Jul 2017

RIL’s Q1 FY18 petrochemicals revenue up 22.9% y-o-y

Reliance Industries Limited (RIL) has reported its financial...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X