Farmers Associate Pakistan (FAP), Chairman Shah Mahmood Qureshi has strongly supported the demand of bringing the agricultural sector into the tax net and asked the big growers to pay agricultural income tax and contribute in the national revenue.
He said the agriculture sector is paying indirect taxes but time has come that well to do farmers also pay income tax if we wanted to avoid International Monetary Fund or other donors. Speaking at the meeting arranged to mark the completion of 20 years of FAP here Saturday, Qureshi said that the agricultural sector could play a pivotal role in strengthening Pakistan's ailing economy and adopting a course to self-reliance. He said that small farmers (subsistence farmers) could be exempted from paying agricultural income tax but those who could pay should contribute in national development.
He said that the parliament consists of public representatives and they find out solutions to the problems being faced by the country and the masses. He added that if there is not consensus on accepting the conditions imposed by international monetary organisations such as Reformed General Sales Tax (RGST), we should generate our own resources.
If the salaried class and other segments of the society are paying income tax, then why not big growers, he questioned. However, he said that there could be a debate and discussion on the modalities of payment of income tax by the agricultural sector and making it farmer-friendly. He said he is ready to take up the task of creating national consensus on agricultural income tax and raising the issue in the parliament.
Qureshi said that time has also come to go for agricultural reforms and initiating a debate on its advantages and disadvantages. Pakistan's agricultural sector has enormous potential and could create surplus in terms of food, not only for our selves but also for other countries of the region, he added.
He observed said that the economic situation of the country is extremely challenging. IMF's programme is on hold, fiscal deficit on the rise and its implications could be well understood. Inflation is also in double digit while the food inflation is hitting masses very hard. Rising level of poverty and unemployment are other major areas of concern for the country. Similarly shaken investor confidence, both of domestic and foreign due to security and uncertainty is also adding to our woes, he maintained.
The FAP chairman said that essential pre-requisite for a healthy economy; energy and water, is also absent in our country. Without energy, how could our industry work and how we could operate our tube wells for irrigating the crops. Without water how could we development our agriculture, he questioned and added that some US experts in their report have hinted that water could be a bone of contention between India and Pakistan in the times to come.
"We have seen a glimpse of this conflict in the recent past within our country when Sindh and Punjab provinces had differences on water allocation," he remarked. He said that we should pay attention to the issue seriously and work for conservation of water and developing water reservoirs.
Qureshi said that as foreign minister, he had raised water issue with Indian Prime Minister Man Mohan Singh and stressed instead of talking over some dams, the two sides should discuss it in totality. He pointed out that we have hundred of thousands of cultivable land in Pakistan, which are not being cultivated due to shortage of water. He referred this to Balochistan and said if water was made available, Dera Ismail Khan could produce finest cotton. He added that availability of water could also help promoting livestock in Balochistan.
Regarding Kalabagh Dam, he said that Pakistan needs dams and there is a huge potential of constructing water reservoirs on Indus River System. He said that we should go for other proposed water reservoir projects if we were unable to develop consensus on the dam. He said that we should continue working on developing consensus on Kalabagh but in the mean time should pay attention to other projects.
He also called for changing the mindset of the farmers towards water utilisation and said that we should stop the present practice of flood irrigation and should go for modern water usage, which would also help enhancing productivity. He also called on Farmers Associate Pakistan (FAP) to sit together and devise a five year plan as 'way forward' to analyse where our agricultural is right now and where it should be after five years. He said such a plan should only aim at benefiting farmers and Pakistan.
The FAB chairman also informed the audience about his efforts as foreign minister to promote agriculture of Pakistan which include convincing EU for greater access to Pakistani industry to its market and major benefactor of it was textile related to agriculture, ensuring entry of Pakistani mangoes in to US market and initiating export of Halal meat from Pakistan. He was of the view that eight to 10 percent growth of economy could be ensured through promotion of agriculture. The function was also addressed by the FAP Vice Chairman Hussein Jehanian Gardezi.