Farmers threaten to stage protest

Reject withdrawal of sales tax exemption on agri-inputs, animal feed

LAHORE:

Farmers have emphasised that the recent move of the government to withdraw the sales tax exemption on agricultural inputs and animal fodder will push up the cost of doing business and reduce the income of growers.

Sales tax exemption has been withdrawn on maize, seeds, fish meal, animal feed, soybean, raw cotton, banola, cottonseed oil, oil cakes and agricultural machinery.

In a statement on Saturday, the Pakistan Kissan Ittehad rejected the reversal of sales tax exemptions and questioned why farmers were being made to suffer for loans taken by the government from the International Monetary Fund (IMF). They lamented the deterioration in the standard of living of growers.

“With the current sales tax regime, farming is no longer a profitable business,” it said.

The Pakistan Kissan Ittehad pointed out that even earlier, the farmers were hardly able to compete at the regional level because the governments of neighbouring countries were offering massive subsidies and providing support for the growers. The farmer group announced that it would hold a protest on February 14, 2022.

Setting out its demands, the Kissan Ittehad called for fixing the electricity tariff for agricultural tube wells at a flat rate of Rs5.35 per unit.

“Fuel price adjustment for agricultural tube wells should be abolished,” it stressed. “Sales tax on hybrid maize seed, hybrid rice seed, imported oilseeds, soybean, vegetable seed, agricultural machinery, raw cotton, banola, banola oil, oil cakes, ingredients of poultry feed and fish meal should be withdrawn immediately.”

Moreover, it requested that wheat support price should be fixed at Rs2,200 per 40 kg considering the hike in prices of fertiliser, electricity and diesel. “If these demands are not met immediately, the Kissan Ittehad will demonstrate its power and hold a protest,” the association threatened.

Published in The Express Tribune, January 30^th, 2022.

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