Home / Knowledge / News / Textiles / Ginners Association contests imposition of RGST
Ginners Association contests imposition of RGST
01
Dec '10
Pakistan Cotton Ginners Association (PCGA) has refuted the Reformed General Sales Tax (RGST) and has decided not to approve it. It has decided to contest the imposition of RGST and flood tax at all levels, for the reason that the ginning sector is not in a condition to bear any new tax, and this even includes the Value Added Tax (RGST).

The Senate's Standing Committee's decision of approving the RGST is facing strong objections from various groups, and some believe that, the approval of the bill took place in the absence of a few Senators who were opposing it.

A majority of the political parties were against RGST and flood surcharge, but the Federal Government seemed to be determined to execute the move under pressure from IMF/World Bank, and was even hiding the details and effects of imposition of these taxes.

With the traders shifting the extra tax burden on consumers, imposition of these taxes is feared to give rise to an inflationary situation. Presently, each of the ginning unit pays a tax of around Rs 77,32,000 for each season, and with the imposition of the RGST, this amount is estimated to rise to 88.088 million, compelling the ginners to shut down their units.

If the situation leads to the closure of 1,200 ginning units in Pakistan, there would no substitute available in the country for cotton ginning, pressing and processing activities. It is also seen to jeopardize the businesses of oil-mills, oil extractors, rapeseed and cake sellers.

PCGA expressed grief over the government's approach whereby it intends to impose and collect tax which is eight-times higher than its total investment in the sector. The legislators are functioning as puppets in the hands of IMF/World Bank and other global financial institutions which want to completely exploit the Pakistani industry, to remove its name from the list of exporting nations.

PCGA has warned that, if the legislators try levying such taxes arbitrarily, the ginners would have no other option but to take firm steps to ensure their survival.

Fibre2fashion News Desk-India


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Urmil Arya

Sushila International, a well established textile organisation established ...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

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

December 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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

Yes No

Active Poll

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

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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

Yes No

Active Poll

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

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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

Active Poll

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

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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