According to foreign news, the Federal Board of Revenue (FBR) of Pakistan has officially canceled the 5% cotton sales tax and 4% cotton import tax starting from January 8, 2018. This tax policy will be beneficial to domestic cotton sales and cotton imports.
It is understood that since the cancellation of cotton sales tax and import tax may cause cotton prices to fall in the local market, thus affecting the interests of cotton farmers, cotton sales in Pakistan have basically stagnated since January, and cotton farmers are reluctant to sell. Ihsanul Haq, chairman of the Pakistan Cotton Gin Association, believes that this sentiment will affect cotton farmers’ planting intentions in the next year.
Since 2001, Pakistan’s imports of long-staple cotton and other high-grade cotton have continued to increase. Pakistan’s cotton production in 2017/18 is expected to reach about 11.1 million bales (170 kg/bag), while the latest cotton production target is 12.6 million bales. Pakistan cancels cotton import tax or cracks down on cotton planting intention
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