GST on cotton ginning waste Withdrawn in Pakistan
Pakistan Times Business & Commerce Desk

ISLAMABAD: The government of Pakistan has removed GST on cotton ginning waste here Thursday.

A Central Board of Revenue notification says that the tax has been withdrawn in view of the negligible amount received by the government and due to practical difficulties of documentation required for keeping records.

It says that ginning of cotton is a taxable activity. Ginned waste, consisting of mud and wooden remains of the cotton flower also falls within the ambit of a taxable supply.

While the revenue from the supply of ginning waste is negligible, it was an irritant, as the ginner was required to account for its stocks, which was not possible due to nature of the process.

Besides, ginning waste is used for burning by the labourers working in the ginning factories or at the brick kilns.

The central board of revenue took this decision realising the practical problems being faced by the ginners on the number of representation received from the ginners association.●