Cotton fee was levied by Government of Punjab vide the Cotton Control Ordinance/Rules 1966 and its recovery was earlier assigned to the Agriculture Department. However, the levy was assigned to Excise and Taxation Department in 1973. The rates of fee since its levy continue to change and at present it is charged @ 0.10 paisa per kg. Through a notification, Excise and Taxation Inspectors were declared as Cotton Inspectors and following registers were described to be maintained by an owner/proprietor of a Cotton Factor for the purpose of Cotton Fee
Gate Register
The arrival of Phutti through trucks or other careers etc. received through main gate is entered in the Gate Register and a gate pass is issued to the carrier of Phutti (raw cotton).
XX Register (Weight Register)
After entry in Gate register, phutti is weighed and entered in "Tak Patti Register" and after weight of the phutti, it is entered in XX register on daily basis.
Ginning Register
After weight and entry into XX register, phutti is put to ginning section and daily ginning i.e. total phutti , lint obtained and cotton seed obtain is entered in Ginning register according to their weight.
Pressing Register
After ginning the lint is sent to pressing Section where it is converted into bales and every bale bears its lot number and bale number. The pressing register contains full particulars of the bales pressed on daily basis carrying name of party date, serial number and lot number.
Out Gate Register
Out gate register is maintained at out gate in which every lot/bale taken from the factory is to be entered and a gate pass showing lot number, number of bale is to be issued to the driver of the carrying vehicle. Cotton fee at the prescribed rate by the Government is to be payable by every owner of a ginning factory on self-assessment basis by every 7th of the following month. In case the owner is different from the occupier, the liability is that of the owner who, on his part, is expected to make suitable arrangements with the occupier for the payment of the fee. The factory management is bound to submit a return in form "Y" on fortnightly basis and monthly basis along with payment receipt. In case of failure of payment or otherwise detection of any evasion by a cotton factory, the Excise and Taxation Officer of the district after issuing necessary notice and personal hearing to the proprietor/owner of a cotton factory is empower to assess the cotton fee at the enhanced rate not more than equal of the amount of original fee. However, the aggrieved owner/proprietor has the right to file an appeal before the Director, Excise and Taxation concerned or revision before the Director General, Excise and Taxation Punjab, Lahore.
An E&T Inspector deputed for checking of Cotton Factory visits the factory allocated to him twice a month and check all the record/registers as mentioned above and made cross checking to ensure that no leakage of cotton fee is taking place. Besides Inspector Incharge, the AETO Incharge and the ETO are also conducting checking of cotton factory by surprise or as and when required. The record of cotton (Phutti) is also maintained by the Agriculture Department and the Pakistan Cotton Ginners Association according to their requirement and sometimes department has to tally the figures with both the departments.