LAHORE: Growers organizations have claimed that an additional burden of Rs 25-30 billion has been imposed on farmers in Punjab by increasing rate of water cess and levying a new tax of Rs 100 per acre on land irrigated through tube-wells.
Basmati Growers Association (BGA) President and Punjab Water Council (PWC) Convener Farooq Ahmad Bajwa while talking to Business Recorder said that his organisation reject the claim of the government that no new tax has been introduced in it.
He said that Punjab has increased the rate of "abiana" (water cess) from Rs 250 per acre to Rs 400 per acre which means a 40 percent increase in the cess.
Similarly, he said that Rs 100 per acre has been levied on the agricultural land which is irrigated through tube wells. He said it is a new tax as there is no such precedence in the past. He said that land is irrigated through tube wells when canal system could not meet the requirement. "In this way, abiana on such land has actually been doubled which means an additional burden of Rs 25-30 billion on the growers," he added.
Bajwa said that cotton crop was already on decline for the last many years and imposition of 17 per cent GST on lint and cotton seed means totally ruining this crop.
Agriculture Republic Co-Founder Aamer Hayat Bhandara also complained that cotton was totally neglected in the Punjab budget as was done in the federal budget. He claimed that budget revolves around rice, sugarcane, wheat and maize. Allocation of Rs 10 billion for establishing centre of excellence for these crops is evidence to it. He also wondered whether it is a plan to privatize the research centers for these crops.
He said the development budget is almost the same as was last year rather last year it was slightly higher but later revised downward, then why claims of enhancing it multiple times. He also termed allocation for subsidies as peanuts saying Rs 4 billion means Rs 73 per acre only.
Bhandara said that Rs 28 billion have been earmarked for farm mechanization but last available agriculture census is 17 years old, so how to know on what machinery should be promoted through this amount of Rs 18.5 billion for inclusion of the private sector in agriculture extension services, how, who will keep an eye on the services of the private staff advising the farmers about proper chemicals instead of marketing the companies' products and how to address the farmers' grievances in case of adulterated products. Aamer said allocation for livestock and dairy development is welcoming but animal fodder and nutrition is the major problem for landless livestock farmers and this issue should also be addressed.
Copyright Business Recorder, 2021
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