Page 29 - May-June-2020

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Ginners commit to pay Rs

200 per maund extra for clean

contamination free cotton

Mr Malik Nauman Ahmad Langrial, Punjab Minister officials, researchers and representatives.
for Agriculture informed that ginners have
committed to pay a premium price of Rs 200 extra The meeting deliberated upon the cotton THE SMARTER
per maund for contamination free - clean cotton. production targets for the Punjab province and
measures to be adopted for achieving them. The
He said the dept. would monitor input quality and departments presented data about the availability
prices and all efforts will be made for provision of of essential inputs (fertilizer, pesticide) and canal WAY TO INDIGO
essential inputs for the cotton crop at affordable water irrigation situation and electricity supply
prices. position in the coming season.

He said this while presiding over a meeting of Mr Jahangir Khan Tareen also spoke on the
Cotton Crop Management Group (CCMG) at occasion and stated that the federal government
Central Cotton Research Institute (CCRI) Multan. Mr would play its role in achieving the cotton
Jahangir Khan Tareen, Senior Pakistan PTI leader production target of 15 million bales set by Prime AD
APTMA requests withdrawal
was also present at the meeting along with other Minister Imran Khan.

of 4pc withholding tax

Funds of Rs 46.200m approved

As per APTMA letter addressed to the Chairman withholding tax on entire textile value chain will surely
FBR, 4pc withholding tax imposed on the entire hasten to the closure of these factories resulting in
for “1,000 Industrial Stitching Units”
textile value chain is creating more difficulties for the massive de-industrialization loss of revenue to FBR
industry ultimately leading to its closure. and unemployment of over a million people.’’

Mr Shahid Sattar, Advisor to APTMA said, “Yes, we The letter stated, quoting an example while looking at
Funds of Rs 46.200mn for “1,000 Industrial Stitching Units” project has been approved by the Planning
have agitated the issue in the letter written to FBR the cotton purchase from the ginners, a 4pc
Commission to promote the public-private partnership to boost the value addition in the field of textile
chairman mentioning that in repeated meetings both deduction from the ginners invoices will lead to
garments. An MoU has been signed with SMEDA for its execution.
in and outside of FBR, in the presence of others it pressure on ginners to reduce the price they pay for
has been repeatedly stated that tax on domestic cotton procured from the farmer as their own tax Smart-IndigO’M revolutionizes the dyeing process for denim. It opens-up the
60% funding for the machinery will be provided from PSDP and 40% would be borne by the beneficiary of the
commerce was 1pc instead of 4pc as there is no liability in reality is only for ginning charges which industrial production of Leuco-Indigo on the basis of electro chemical reduction for
stitching units.
change in the income tax laws, rules and regulations. constitutes 35pc of the ginned cotton. the first time. This environmentally friendly process was evolved in Switzerland and
However, last night to our utter surprise and developed technologically to marketability. A Global Innovation! The smarter way
The project will be implemented all over the country including AJK and GB.
disappointment a ‘clarification’ by FBR was issued This would lead to huge income tax refunds claims
stating that the withholding tax on the entire textile which have little chance if any of it being settled to indigo is trend setting for the whole denim industry. Follow us!
1st Phase of the project for Establishment of 150 Industrial Stitching Units (ISU) was approved by CDWP on
value chain would be 4pc.” within any reasonable time frame. This is more
15th January 2018 at a total cost of Rs.350.545mn. However, no allocation from PSDP was made during the
onerous than GST as there is no allowance of setoff
current financial year 2019-20.
He added, “With the imposition of 17pc sales tax, of withholding tax deducted on inputs.
increase in turn over tax to 1.5pc and other issues, The letter in the end asks FBR to end 4pc
After taking over the charge, the Adviser to the Prime Minister on Commerce and Textile has taken serious
bulk of the industry was already on the verge of withholding tax on entire tax value chain and instead
notice on extraordinary delay of the project. Under the guidance of the Adviser, Planning Commission was
shutdown due to non-profitability and extreme notify 1pc tax as was agreed in countless meetings SEDO ENGINEERING SA Technical Color Solution
requested to allocate appropriate funds for the project during the CFY 2019-20.
liquidity crunch. The final blow of 4pc imposition of with Industry at all levels of government. Rue du Village 7, CH-1908 Riddes VS. 65/2, 14th Lane, Off Kh-e-Badban
Switzerland Phase-VII DHA, Karachi, Pakistan.
+41 27 306 80 80 . +92 21 363 90 250 .
May/June 2020
July/August 2019 info@smartindigo.com amohiuddin@tec-color.com
www.smartindigo.com www.tec-color.com