ISLAMABAD: Federal Minister for Industry and Production, National Food Security and Research Rana Tanveer Hussain, on Friday, said the government has decided to introduce a track and trace system in the local cotton and ginning industry aimed at avoiding tax evasion.
Talking to a delegation of the Pakistan Cotton Ginners Association, who called on the minister, he said the cotton industry has a pivotal role in the rural economy and the potential to provide employment opportunities for a large portion of the skilled and semi-skilled workforce in the country.
The meeting discussed matters relating to additional taxation measures on seed cotton and cotton seed cake in the current budget, said a ministry statement.
Weekly Cotton Review: Market witnesses satisfactory business volume
The minister said a track and trace system will be implemented on locally produced cotton bales in order to avoid tax evasion to protect local farming communities as well as the industrial sector of the country.
Hussain said the Cotton Control Act will be implemented in real terms in collaboration with the provincial governments and assured the delegation that their proposals regarding sales tax on seed cotton and cotton seed cake will be considered.
The minister also assured the delegation that the matter of new taxation measures will be taken up with the Finance Division and the Federal Board of Revenue (FBR) for consideration to address the issues faced by the local ginning industry.
Speaking on the occasion, the representatives of the Cotton Ginners Association apprised the minister about the additional taxation on cotton products and said that heavy taxes were affecting the production of the cotton ginning industry. They urged the need for rationalisation of taxation on these commodities for the benefit of the local industrial sector as well as promoting cotton crop output in the country.
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