Cotton ginners’ problems resolved
ISLAMABAD: Federal Tax Ombudsman has finally resolved the longstanding issue regarding tax credit grievances confronting the Pakistan Cotton Ginners' Association.
On the intervention of Federal Tax Ombudsman, the Chief Commissioner, Regional Tax Office, Multan, held a meeting with PCGA in order to resolve the longstanding grievance of Cotton Ginners, asked them to provide details of both their supplies and the tax withheld by the mills.
In a letter written to the FTO Office, the Chief Commissioner, RTO, Multan, while conveying progress of the case, has confirmed that the Department would take prompt action as soon as the details along with supporting evidence would be made available by the PCGA.
The PCGA has also conveyed satisfaction on the outcome of the meeting, and thanked Federal Tax Ombudsman for getting their longstanding problem resolved. The Federal Tax Ombudsman has directed the FTO Office to monitor further progress of the case on fortnightly basis.
Pakistan Cotton Ginners' Association ( PCGA) recently complained to the Federal Tax Ombudsman to redress at least 20 years old grievances of the association. According to PCGA, while tax from Cotton Ginners had been deducted by the textile mills, no tax credit was allowed to them. Income Tax Department states the reason for not allowing tax credit was that tax deducted by textile mills was not being deposited in the Income Tax account. The department was issuing notices to the Ginners' for default of tax payment, which according to PCGA was arbitrary and unjust. The Ginners' Associated said the tax deducted should be recovered from the mills, whereas the Department instead was enforcing recovery of tax from the Ginners. The problem had further exacerbated as 134 textile mills out of a total 379 had closed their business permanently during period 1980 to 2008. -App