National Assembly Takes Action to Support Cotton Sector and Farmer Interests

The National Assembly Standing Committee on National Food Security and Research has instructed the Federal Board of Revenue (FBR) to consult with the International Monetary Fund (IMF) if the existing tax policies continue to fall short of generating sufficient revenue and harming the cotton industry.

In a recent meeting, the committee also directed the Ministry of National Food Security and Research to engage with stakeholders, including the Ministry of Law and Justice, and present recommendations to address challenges in the agricultural sector.

The Ministry has also been asked to seek a legal review of the Pakistan Animal Science Council Bill, 2024, to determine if it comes under federal jurisdiction and if cabinet approval is needed for a Private Member Bill.

Additionally, the FBR has been tasked with providing comprehensive reports on cotton-related sales tax collections and refunds over the past five years, data on cotton trade, revenue losses due to current tax policies, and updates on the implementation of tracking systems like RFID to regulate cotton production and trade.

The committee urged the FBR to work with the Ministry of Commerce and consult the IMF if the current tax measures fail to stabilize the cotton sector.

Furthermore, the Ministry of Energy (Power Division) has been directed to develop short-term relief strategies for farmers to mitigate the impact of high electricity costs, especially as talks continue on terminating contracts with five Independent Power Producers (IPPs).

The committee has also requested a detailed report on the over-billing practices of power distribution companies, including their complaint resolution processes and accountability measures for those responsible for excessive billing.

The committee has mandated that the chief executives of all electricity distribution companies (Discos) attend the next meeting via Zoom to address over-billing issues affecting the agricultural sector.

SOURCE: The Profit Magazine Pakistan