Cotton Cess raised to PKR 50 per bale – Alfalah Securities Limited

Karachi, July 05, 2012 (PPI-OT): The federal government has approved a cess of PKR 50 per bale as against the current Cess of PKR 20 per bale in order to go for a functional restructuring of Pakistan Central Cotton Committee (PCCC) which is established under Cotton Cess Act, 1923, and is engaged in cotton research and development.

According to Alfalah Securities Limited, it operates through funds generated by cotton cess levied on each cotton bale exported or consumed by the industry. The funds raised through the additional cess would be utilized to improve focus on research and development on cotton however; it would also increase the prices of cotton which would lower the margins of the textile companies.