The Pakistan Cotton
Ginners Association (PCGA) has opposed the recommendation of the Economic
Coordination Committee (ECC) to withdraw 4 per cent customs duty and 5 per cent
sales tax on the import of cotton from India and other countries, especially
when the countryhad already suffered a loss of Rs 500 billion
due to reduced cotton production.
The association feels the step will prove
detrimental to domestic cotton growers and has urged Prime Minister Shahid
Khaqan Abbasi not to notify the recommendation for the benefit of the
agriculture sector, according to media reports in Pakistan.
PGCA said when more than 1.3 million bales were
lying in ginning factories, allowing import of cotton will tantamount to
adversely hampering the interests of the growers and ginners who heaved a sigh
of relief after cotton prices were raised to a reasonable level recently.
The cotton ginning industry sees no justification
for withdrawal of tax and customs duty on cotton imports at the cost of
Pakistan’s farmers, arguing fibre import via land or sea was not in the
interest of national economy. Last
year, cotton harvest in Pakistan had dropped by 30 per cent and if appropriate
measures were not taken, the situation could deteriorate further and affect
domestic output, PGCA added.