PCGA rejects proposed withdrawal of cotton import duties

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 country had 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. 

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