MULTAN: In a significant development, a delegation from the Pakistan Cotton Ginners Association (PCGA), headed by Chairman Chaudhry Waheed Arshad, met with the Minister of Finance, Revenue, and Power, Ali Pervaiz Malik, in Islamabad to address the urgent issue of excessive taxation on the ginning industry. The delegation raised serious concerns about the negative impact of these taxes on the industry and the broader agricultural sector.
Chaudhry Waheed Arshad underscored the pivotal role of cotton in Pakistan’s economy, emphasizing that the industry has been disproportionately burdened by heavy taxes. He cautioned that this could lead to the collapse of the ginning sector, depriving cotton farmers of fair compensation and severely affecting the country’s cotton production. Arshad urged the government to abolish the sales tax to stimulate cotton production, which is crucial for employment and rural economic development.
“Cotton is a cornerstone of our national exports, and increasing its production is key to the country’s prosperity,” Arshad asserted. He called for reduced taxes on the ginning industry to ensure that farmers receive adequate compensation for their crops, warning that higher taxes could push businesses into the informal economy and worsen the industry’s decline.
Minister Ali Pervaiz Malik acknowledged the vital importance of cotton to Pakistan’s economy and expressed a commitment to exploring relief measures for the ginning industry. However, he noted that the existing tax regime is imposed by the International Monetary Fund (IMF), limiting the government’s ability to implement immediate changes.
The delegation also included Vice Chairman PCGA Rana Wasim Hanif, former Chairman Haji Muhammad Akram, and Mahesh Kumar, who all highlighted the urgent need for government intervention to support the industry and protect the livelihoods of millions of workers reliant on it.
