The Federal Board of Revenue (FBR) in Pakistan has warned ginners to pay taxes of one billion rupees before or on March 30, 2015. Otherwise notices would be served to them in default of payment of tax at the rate of Rs 6 per maund on binola (cotton seed) as per the agreement reached between the PCGA and the Ministry of Finance.

The Pakistan Cotton Ginners Association (PCGA) has asked members to pay tax on the sale of binola cotton seed at the rate of Rs 6 per maund till March 30, 2015, to save themselves from any trouble otherwise they would have to pay five per cent general sales tax on oil-cake (khal) and two percent on binola oil.

The Federal Board of Revenue and the Pakistan Cotton Ginners Association have reached an agreement to pay Rs 6 per maund tax on cotton seed instead of five per cent GST on oil-cake and two per cent on cotton seed oil.

Ginners would have to pay more Rs one billion as tax against the sale of 165.44 million maund of binola. About 88,23,511 tons of raw-cotton (phutti) was arrived in the ginneries. Of them 66,17,633 tons of cotton seed were sold to oil expellers.