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PCGA opposes import duty waiver on Indian cotton
Jan '16
The Pakistan Cotton Ginners Association (PCGA) has said that the Government should not consider any proposal to waive duty and tax on the import of cotton from India.

The Pakistani Government had imposed a 10 per cent regulatory duty on imports of cotton yarn, grey and processed fabric, particularly from India from November 1, 2015, in a bid to protect the domestic industry by preventing the dumping of cheap raw material.

In a statement in Multan, PCGA Chairman Nawab Shahzad Ali Khan said that regulatory duty, sales tax and customs duty on import of cotton should not be withdrawn and it must continue for survival of local farmers and ginners.

He said that if tax and duty were waived off on the import of cotton from India, then it would be detrimental to local growers and ginners whose 1.5 million bales were lying unsold. He suggested the Government should wait till the disposal of unsold cotton stock.

Khan said that India had been a major beneficiary of duty-free import of cotton yarn by Pakistan for about four years, which had badly hit the domestic industry and agriculture sector. He said there would be a huge loss for the cotton sector if farmers shifted to other crops under a 'well planned conspiracy.'

He said that the exemption from customs duty, regulatory duty and sales tax on imported cotton may hit the domestic industry hard as it would drive down demand for local cotton, which in turn, will mean that farmers will have to be paid lower. (SH)

Fibre2Fashion News Desk – India

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