Lifting withholding tax on phutti notified

KARACHI: Federal Board of Revenue (FBR) has issued the notification relating to withdrawal of the 3.5 percent withholding tax levy on the sale and purchase of phutti, Geo News reported.

Pakistan Cotton Ginners Association has termed the notification a positive step for the industry.

Cotton ginners will be providing details of the sellers of phutti on the specified form of the FBR, under this notification. The notification further said that it would be mandatory for the cotton ginners to deduct 10 percent withholding tax from the commission of the commission agents, while 3.5 percent withholding tax will have to be paid on buying phutti from traders other than growers.