LAHORE – The Farmers Associates Pakistan (FAP) has rejected the government’s decision to levy 17 percent sales tax on agricultural machinery, fertiliser, pesticides, seeds and other agricultural inputs, in a meeting of the Board of Directors held under the chairmanship of FAP Vice Chairman Syed Hussain Jahania Gardezi.
FAP spokesman Tariq Bucha said that, seemingly, certain unfaithful hands in the bureaucracy exist; who formulate polices against the interest of farmers and the agricultural sector. He criticised the government for tax imposition on agricultural inputs through Presidential Orders and issuance of SRO’s by FBR on March 15, 2011. These SROs will surge prices, thereby, increasing the cost of production. Consequently, price of output products in the market will rise and will directly impact the common man, already suffering from the rapidly dwindling purchasing power.
Bucha further said that a Pakistani farmer annually uses 130 million bags of urea, 30 million bags of DAP, seed worth Rs 100 billion, pesticides amounting to Rs 25 billion, tractors and agricultural machinery of over Rs 50 billion, which are already very highly priced. This tax will further increase the cost of these inputs by 17 percent and would take them beyond the reach of farmers with average and small holdings.
The spokesman said that Pakistan’s policy makers are oblivious about the ground realities and formulate policies against farmers, without considering facilities, concessions and incentives provided to the farmers all over the world. He lamented that the government has directly attacked pockets of people, including those residing in urban areas. FAP urged the government and members of the parliament to immediately address farmers’ reservations and to direct the FBR for withdrawal of these SROs. This, FAP urged, is imperative to save farmers, common man and the frail economy of Pakistan from severe damage, failing which the farming community, as a whole, will be forced to opt for extreme measures. He also implored all political parties to convince and force the government to immediately withdraw this catastrophic imposition of reformed GST on agriculture inputs.
