Farmers warn govt against GST imposition on agri inputs

LAHORE: The Pakistan Kissan Ittehad (PKI) has warned the government against imposing general sales tax (GST) on agricultural inputs in the upcoming budget, stating that such a move would deal a final blow to the already struggling agricultural sector and further damage the national economy.

“The government should instead take immediate steps to reduce the cost of agricultural production,” said PKI President Khalid Mahmood Khokhar during a press conference on Monday.

Khokhar accused the current leadership of pursuing policies that serve their political interests at the expense of farmers, causing irreparable damage to the sector and contributing to a sharp decline in crop production. “Around the world, agriculture and food security are considered top priorities by governments. Unfortunately, in Pakistan, the sector is being undermined due to pressure from international financial institutions,” he said.

Flanked by fellow PKI members, Khokhar highlighted the country’s rapid population growth, warning that Pakistan is adding hundreds of thousands of mouths to feed every year. “If we fail to stabilise and strengthen our agricultural system, we are heading toward catastrophe,” he warned.

He further criticised the imbalance in taxation, noting that while there is no tax on imported cotton, locally grown cotton is subject to 18% GST. “As a result, cotton production has plummeted from 14.7 million bales to just 5 million,” he said. He added that the country’s import bill continues to swell due to the increasing reliance on imported food, while exports of key crops like mangoes, kinnow, and maize have halved in the past year.

The PKI representatives emphasized that they are not seeking charity - only fair returns for their produce in line with international standards. “Farmers should be able to earn a reasonable profit for their hard work,” they insisted.

Khokhar painted a grim picture of farmers’ current conditions, saying many are in rags and unable to apply adequate amounts of fertilizer or other inputs to their fields, resulting in declining per-acre yields. “Farmers don’t even have enough money to meet household expenses. Some have even had to postpone their daughters’ weddings due to poor returns on their wheat crops,” he lamented.

The PKI also rejected the Rs 15 billion relief package announced for wheat growers, calling it grossly insufficient against the estimated Rs 1,600 billion in losses. Khokhar urged the Punjab agriculture minister to fulfill his responsibility and work actively to improve the livelihoods and well-being of farmers.

Copyright Business Recorder, 2025