KBP urges government not to impose GST on agriculture inputs

The Kissan Board Pakistan (KBP) has demanded the government to withdraw the decision of imposing general sales tax (GST) on agriculture inputs. According to a press release issued here on Sunday, KBP President Sardar Zafar Hussain said that agriculture was the backbone of Pakistan's economy and out of exports of Rs 20 billion, Rs 13 billion were earned from the agriculture sector.
He said that according to an estimate Rs 350 billion were spent on agriculture inputs, which included fertilisers, seeds, pesticides, equipment and tractors. He said that if the sales tax was imposed on agriculture inputs it would increase expenses up to Rs 60 billion annually. "Small farmers who have less than 12 acre of land will suffer badly and utilisation of agriculture inputs would be reduced, which could affect productivity," he added.
He said that low productivity would lead to shortage of food items and price hike. "We want FBR reformed its system of tax collection and tax evasion should be stopped," he added.
He said the government should provide all incentives to the agriculture sector that are being given to traders and industrialists in the form of loans and insurance. He said that imposition of GST and withdrawing of Rs 229 billion subsidy would overburden farmers.