MULTAN: The Federal Board of Revenue (FBR), Regional Tax Office (RTO) has advised Pakistan Cotton Ginners Association (PGCA) to pay their due taxes to save them from any trouble within prescribed time.
It was stated by Chief Commissioner Regional Tax Office Abid Raza Bodhla during meeting with delegation of Pakistan Cotton Ginners Association led by Chairman Haji Muhammad Akram along with Shehzad Ali Khan, Amanullah Qureshi, Sohail Mehmood Haral and others.
During the meeting, Chairman Pakistan Cotton Ginners Association Haji Muhammad Akram has shown concerns over the excess collection of taxes and notices issued to Ginners by Federal Board of Revenue.
He said that Federal Board of Revenue has imposed 8% sales taxes on sale of 40 kilograms cotton seed and withdrawn 2 percent sales taxes on cotton seed and directed to pay sales tax on sale of Cotton oil and Cotton seed with 6 percent. The Federal Board of Revenue has signed memorandum of understanding after positive dialogue with PCGA. But Federal Board of Revenue has not taken approval from cabinet division in this regard. It has no legality under Federal Board of Revenue and agreement has no legal status.
Chief Commissioner Abid Raza Bodhla informed them that field formations are collecting sale taxes from cotton ginners on direction of Federal Board of Revenue under SRO 253(I)/2019 and all Cotton Ginners will pay taxes on the purchase of seed oil cake.
Oil Mills Owner and suppliers who deal with seed oil cake are bound to pay their taxes. Pakistan Cotton Ginners are bound to pay their due taxes. Taxes are the main source of revenue to fund public infrastructure and effective collection of taxes is crucial for well-functioning society. Cotton Ginners should pay all their taxes before 1st July 2019 to avoid any action from Federal Board of Revenue.