Home / Knowledge / News / Textiles / KCA sees red over raw cotton sales tax
KCA sees red over raw cotton sales tax
15
Apr '15
The Karachi Cotton Association (KCA) has opposed the government’s plan to impose sales tax on cotton in the 2015-16 Budget to mobilise PKR 50 billion in revenue, the Pakistani media has reported.
 
KCA chairman Amin Hashwani said in a statement that such a move would be detrimental to the interest of growers and cotton production.
 
He said that nowhere in the world sales tax is imposed on raw cotton because it inhibits growers from enhancing production and meeting the ever rising demand of raw material by textile industry.
 
The government has set a target for cotton production for 2015-16 at 15.49 million bales. Pakistan could end up with exportable surplus of around one million bales.
 
The KCA chief argued that since 80-85 per cent of cotton crop is exported in the form of raw cotton, cotton yarn, cotton fabrics or value-added made-ups but upon levying sales tax on cotton it would have to be refunded at the export stage.
 
For the collection of sales tax on cotton, the government would be incurring huge expenses and will also bear administrative cost for refund of payments and thereafter insignificant amount of tax would be left with the government.
 
He said cotton is a highly priced commodity and exporters usually operate on small margins. Sales tax refunds can stretch for a period of six to seven months, and that delay can leave exporters short of money to run their business. 
 
The KCA chairman urged the government not to impose sales tax on cotton as it would have adverse repercussions for all stakeholders. (SH)
 

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 17th Jan 2017

GST rollout from July 1; states to control small taxpayers

The Centre and states have reached a consensus on the issue of dual...

Textiles | On 17th Jan 2017

Reliance Industries net increases 3.6% in Q3FY17

In the three months ended December 31, 2016, India’s biggest private...

Textiles | On 17th Jan 2017

IMF projects advanced economies to grow at 1.9% in 2017

Advanced economies are projected to grow by 1.9 per cent in 2017 and...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marten Alkhagen
Swerea IVF AB

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search