National Assembly Standing Committee on Textiles and Ministry of National Food Security and Research on Tuesday unanimously agreed to fix the intervention price of cotton at Rs 3200 per 40 kilograms for financial year 2015-16.
This was decided after discussing the proposals of sub-committee report regarding fixation of cotton price and the proposals of FBR regarding increasing sales tax on value added textile export sector.
The National Assembly standing committee on textiles also decided to take provinces on board to implement intervention price and recommended that Trading Corporation of Pakistan should be made bound to procure at least two million cotton bales for coming season.
It suggested that TCP should hire ginning units for cotton season to protect small farmers.
It also observed that government should adopt neighbouring country India’s cotton procurement model and seed cotton should be procured instead of lint cotton on experimental basis.
The committee also unanimously agreed to revive zero rate status for textile sector and recommended that sales tax on value added items may be reduced to zero percent. It firmly rejected the proposals of FBR for imposing 5 percent sales tax on value added sector.
The meeting was attended by members of the committee, Minister National Food and Security, and FBR representatives.