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  • May 23rd, 2017
  • Comments Off on Waiver of GST on agriculture input: Kissan Ittehad proposal turned down by government
The government has turned down the proposal of Kissan Ittehad with respect to waiver of GST on agriculture input, instigating farmers to plan a protest in front of the Parliament House on the day of budget presentation. President Kissan Ittehad after a meeting with Finance Minister Ishaq Dar, Advisor to Prime Minister on Revenue Haroon Akhtar, Chairman Federal Board of Revenue Dr Muhammad Irshad and secretary National Food and Security stated.

"We will protest in front of the Parliament House against the government and budget." The government is not serious about agriculture sector and has refused to consider a letter written to secretary finance by the Punjab government which included a comparison between cost of production in India and Pakistan.

A letter addressed to the finance secretary by the Punjab government, a copy of which is available with the Business Recorder, stated; "In order to achieve agricultural growth and enhanced farm-productivity and farm income, it is imperative that agricultural inputs are made available to farmers at affordable prices. However, Pakistani farmers are forced to buy inputs at much higher prices when compared to neighbouring countries. The government of Pakistan undoubtedly is facilitating farmers through different initiatives which include Prime Minister's Kissan Package 2015, and Khadim-e-Punjab Kissan Package etc.

"The government has also waived the GST on pesticides in current financial year. While GST on fertilisers, tractors, agriculture machinery and oilseeds is still charged at different rates, due to which local farmers are still not competitive with neighbouring country's farmers.

"The government collected Rs 25.1 9 billion as GST from fertiliser sector against estimation of Rs 45.1 billion and provided Rs 20 billion subsidy on phosphate fertiliser which accounts for only 20% of total agriculture inputs. The GST being paid on inputs has increased the cost of production as well as commodities. "Therefore, in order to enable Pakistani farmers to compete with farmers of regional countries, it is proposed that the government may waive off GST on all agricultural inputs. Total estimated financial implications of this intervention will be Rs 26.10 billion. Debit against tax collection may be adjusted by removing all ongoing subsidies schemes which are to the tune of Rs 37. 960 billion," the letter concluded.



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