Cotton ginners in Haryana have gone on an indefinite strike to protest against alleged disparity in tax structure.
"We have gone on indefinite strike as the state government has failed to resolve our issue regarding refund of tax on inter-state sale of cotton crop," Haryana Cotton Ginners Association President Sushil Mittal said today.
As many as 144 cotton ginners in Haryana have gone on strike, which led to non-purchase of crop being brought by growers in mandis.
"About 5,000 bales per day are arriving in mandis for sale but we are not buying the crop," he further said.
Mittal said cotton ginners are getting refund just 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.
"We are losing Rs 100 per quintal on cotton because of non-payment of full tax refund on cotton," he claimed while blaming the state government for disallowing the full payment of tax.
"We are not demanding charity. Claiming full tax refund is our right," Mittal noted while lamenting that despite assurance by state government, disparity in tax refund has not been resolved so far.
"The non-refunding of full tax will not only hit state ginners but it will also prove to be harsh for growers as their crop will not be bought," he said.
Because of whitefly attack, cotton output in Haryana is set to dip to 15 lakh bales as against last year's output of 24 lakh bales. In Haryana, out of 5.83 lakh hectares, 3.06 lakh hectares was in the grip of pest attack.
