Minister for Industry and Production, National Food Security and Research Rana Tanveer Hussain has announced that the government has decided to introduce a track and trace (T&T) system in local cotton and ginning factories aimed at avoiding tax evasion.
Talking to a delegation of the Pakistan Cotton Ginners Association (PCGA), which called on the minister, he stressed that the cotton industry had a pivotal role in rural economy and the potential to provide employment opportunities for a large section of skilled and semi-skilled workforce.
Meeting participants discussed matters relating to additional taxation measures for seed cotton and cottonseed cake in the recent budget, according to a statement released on Friday.
The minister said that a T&T system would be enforced to monitor production of cotton bales and avoid tax evasion to protect farming communities as well as the industrial sector.
Hussain declared that the Cotton Control Act would be implemented in its true spirit in collaboration with provincial governments and assured the delegation that their proposals about sales tax on seed cotton and cottonseed cake would be considered. He emphasised that the new taxation measures would be taken up with the Finance Division and the FBR.
Speaking at the meeting, PCGA representatives underlined the need for rationalising taxes for the benefit of the industrial sector as well as promoting cotton crop cultivation across the country.
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