Cotton cess to be increased to Rs 50/40 kg

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ISLAMABAD : Federal government has decided to increase cotton cess by 150 percent from Rs 20 to Rs 50 per 40 kg, sources close to Secretary Ministry of Food and Agriculture (Minfa) told Business Recorder. This amount will go to the Pakistan Central Cotton Committee (PCCC), a body corporate under the administrative control of Ministry of Food and Agriculture (Minfa) engaged in pursuing the national cotton research and development program under Cotton Cess Act, 1923. Expenses of the committee and the Research and Development (R &D) activities are met from cotton cess levied on the bales produced in the ginneries. The rate was last fixed at Rs 20 per bale on 1st of July 2006. A meeting of the PCCC s governing body was held on December 13, 2010 under the chairmanship of Federal Minister for Minfa which was also attended by the representatives of All Pakistan Textile Mills Association (APTMA), Karachi Cotton Association (KCA) and Ministries of Finance and Textile. The governing body recommended enhancement in the rate of cotton cess to Rs 50 per bale from January 1, 2011 to generate additional funds for R&D and other functions of the PCCC. This was endorsed by the Chairman, APTMA. The sources said Minfa has proposed that the rate of cotton cess may be enhanced to Rs 50 per bale with immediate effect which will be cleared within a couple of days.

Courtesy : Business Recorder

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