Cotton ginners protest against non-payment of full tax refund

In Haryana, cotton ginners went on strike to protest against alleged disparity in tax structure.

“We are striking and protesting against the state government as they did not solve our issue relating to refund of tax on inter-state sale of cotton crop,” said Sushil Mittal, president of Haryana Cotton Ginners Association.

Nearly 144 cotton ginners in Haryana went on strike which has affected the purchase of crops in mandis.

“Everyday around 5,000 bales arrive in mandis for sale but we are not buying the crop,” he said.

He stated that cotton ginners are getting refund of mere 2.2 per cent against the payment of 4.2 per cent of value added tax paid on raw cotton, denying them the payment of two per cent.

Due to the non-payment of full tax refund on cotton, ginners are suffering a loss of Rs 100 per quintal on cotton, he further stated.

Mittal said that they are not demanding any kind of charity but they are just protesting for their rights.

This strike would severely affect the growers too as their crops will not be purchased by the ginners.