Staple Cotton (Excise Duty) Ordinance, 1978

This 1978 Ordinance imposed an excise duty on "staple cotton" (ginned cotton other than desi-cotton) when it was produced by ginning factories and sold to textile mills, covering the 1976-77 cotton crop. Section 2 defines the key terms, including the "Board" (the Central Board of Revenue), the "Corporation" (the Cotton Trading Corporation of Pakistan), and "sale price" (set at four hundred and fifteen rupees per maund, inclusive of duty, when the Corporation sells to a textile mill).

Section 3 levies the duty on staple cotton sold by a factory, whether directly or through the Corporation, to any buyer other than the Cotton Export Corporation, at rates set out in the Schedule -- sixty rupees per maund for cotton from public-sector ginning factories under the Corporation's control, and fifty-five rupees per maund for private-sector factories outside its control. Where cotton is sold through the Corporation, the Corporation itself pays the duty out of the sale price.

Section 4 requires the duty to be paid at the time of sale and before delivery to a textile mill. Section 5 lets the Board exempt specific staple cotton from all or part of the duty in special circumstances. Section 6 gives the Central Board of Revenue power to make implementing rules, and Section 7 applies the Central Excises and Salt Act, 1944 and its rules to fill gaps not covered by this Ordinance, including recovery of unpaid duty.

This is an old, time-limited fiscal ordinance from 1978 tied specifically to the 1976-77 cotton crop and was set to lapse on 1 July 1978 unless extended by notification, so the duty rates and its continued applicability should be checked against the current official record rather than assumed still in force.