FAP rejects levy of 17 percent RGST on agriculture inputs

Farmer's Associates Pakistan (FAP) has rejected the government's decision to levy 17 percent sales tax on agriculture machinery, fertiliser, pesticides, seeds and other agriculture inputs and said it would make food items more costlier for the common man and reduce agriculture production.
FAP's Board of Directors held a meeting on Monday under the chairmanship of Syed Hussain Jahania Gardezi, Vice Chairman FAP and deliberated upon the adverse social and economic impact of 17 percent sales tax on the agriculture sector. FAP spokesman, Dr Tariq Bucha said it seems there are some unfaithful hands in the bureaucracy which formulate policies totally detrimental to the interest of farmers and the agriculture sector thereby undermining the growth of Pakistan's economy.
He criticised the government for imposing this tax on agri inputs through Presidential Orders & issuance of SRO's by FBR on 15th March 2011 for its implementation on immediate basis, thus by passing the parliament. He said that these SROs would bring flood of increase in prices because these taxation measures without approval of the Parliament would increase the cost of production as well as effect the price of outputproducts in the market.
The 17 percent sales tax would directly impact the people of Pakistan who are already suffering due to government's anti-people and anti-farmer measures like hike in petroleum price and now the imposition of RGST on agriculture inputs. Dr Bucha further added that farmers of Pakistan annually use 130 million bags of Urea, 30 million bags of DAP, seed worth Rs 100 billion, pesticides amounting to Rs 25 billion, tractors and agri machinery of more than Rs 50 billion which are already very expensive. This tax would further increase the cost of these inputs by 17% thus making them beyond the reach of the farmers.
The spokesman said, Pakistan's policymakers seem totally oblivious of the ground realities and make policies which turn out to be purely anti-farmer, totally ignoring the consideration, facilities, concessions and incentives provided to the farmers of the world and especially the neighbouring country India.
FAP urged the government and the members of the parliament to immediately take action and direct FBR to withdraw these SROs forthwith to save the farmers, people and the frail economy of Pakistan from severe damage failing which the farming community as a whole will be forced to take extreme measures in order to redress its grievances. He also implored all political parties to convince and force the government to immediately withdraw this catastrophic imposition of RGST on agriculture inputs as already done in the case of the sizing industry within the textile sector.