Different growers' organisations have strongly criticised the government for levying 3.5 percent withholding tax on agriculture produce and urged the government to immediately withdraw the decision. Farmers Associates Pakistan (FAP) held a meeting of its board of directors, here on Monday, with its Vice-Chairman, Syed Hussain Jehania Gardezi in the chair to discuss the issue.
Participants of the meeting strongly resented government's decision to levy 3.5 tax on agriculture produce. FAP spokesman, Dr Mohammad Tariq Bucha said that there is some unfaithful hand in the bureaucracy that creates such anomaly, which is totally detrimental to the interest of farmers and the agriculture sector.
Government's contention that this tax has been levied on the middleman is totally devoid of true facts because no farmer sells his produce directly because no such appropriate marketing system exists. He further said that FBR has 'secretly imposed' this 3.5 percent WHT on agriculture produce through a SRO 1161 (I) 2010 issued on 31st December 2010 applicable from 1st January 2011.
Dr Bucha feared that the SRO will bring great loss and damage to the liquidity of farmer as the middleman will either stop buying or will charge this tax on the farmers, who will end up paying less for their produce. Moreover, this notification is self-contradictory wherein the sub-section (b), agriculture produce had been exempted from tax and continuing further in this clause withholding tax has been imposed nullifying the exemption thereof, he pointed out.
He remarked that the country's policymakers seem totally oblivious of ground realities and make policies, which turn out to be anti-farmer. They are totally ignoring consideration, facilities, concessions and incentives provided to other farmers of the world and the neighbouring country India, he maintained. FAP urged the government to immediately take action and direct FBR to withdraw this SRO forthwith to save the farmers from its catastrophic effects.
Likewise, Kisan Board Pakistan (KBP) President Sardar Zafar Hussein Khan and General Secretary, Malik Muhammad Ramzan Rohari also termed the levy as addition of another cruel and unjust tax on the growers who are already paying numerous type of direct and indirect taxes.