Ginners oppose increase in income tax rate

The Federal Board of Revenue (FBR) has increased the rate of income tax from 1% to 1.5% on ginners from the current cotton season, and has asked the Tax Managers to collect the tax at the revised rate. Pakistan Cotton Ginners Association (PCGA) Chairman Suhail Mehmood Haral has strongly condemned the revision of rate on income tax on the ginneries, describing it harmful to the interests of the ginning industry.

He said that imposition of fixed tax at the rate of 1% was a financial burden on the ginners and they were struggling for getting it waived, but now the FBR increased the tax by 50% and now it would collect 1.5%. The ginning industry was already passing through severe economic stress because commercial banks had refused to reschedule their debts and advancing loans for the current season.