18pc sales tax on local cotton set to go

The government has, in principle, agreed to withdraw the 18 per cent sales tax imposed on the local sale of cotton, yarn, and grey cloth, provided the International Monetary Fund (IMF) permits it, to ensure a level-playing field for both local and imported cotton and its products. Dawn has learned that the committee of federal ministers and secretaries, formed on the directive of Prime Minister Shehbaz Sharif following a request from the Pakistan Cotton Ginners Association (PCGA), All-Pakistan Textile Mills Association (Aptma) and Pakistan Ready-Made Garments Manufacturers & Exporters Association (PRGMEA), met in Islamabad on Monday and agreed to withdraw the 18pc sales tax on the local sale of cotton, cotton yarn, and grey cloth.