PPP, PML-N in dispute over agriculture tax

PPP accuses PML-N of turning a deaf ear to its concerns

ISLAMABAD:

The Pakistan Peoples Party Parliamentarians (PPPP) and the Pakistan Muslim League-Nawaz (PML-N) hit a stumbling block on Tuesday, unable to reconcile their differences over the proposed 18 per cent standard sales tax on agriculture inputs and machinery.

The tax, which the International Monetary Fund (IMF) insists on as part of its campaign to end

tax exemptions in Pakistan, remains a bone of contention.

Feeling left out in the cold by the PML-N ahead of the budget, the PPP leadership minced no words in expressing their displeasure. They lambasted the PML-N for sidelining a key coalition partner, making it clear that no new taxes on the agriculture sector would be tolerated.

The PPP warned that unless the prime minister or his government personally addressed these concerns, things would not proceed smoothly.

Resultantly, Tuesday brought a flurry of meetings and media talks as the prime minister called on President Asif Ali Zardari in an attempt to win his support before the budget. Separately, PPP held a party meeting, chaired by PPP Chairman Bilawal Bhutto-Zardari, where its lawmakers lashed out at the ruling PML-N for completely abandoning the allied partner and not taking any input in the budget. Besides, two PPP leaders, Shazia Marri and Khursheed Shah, turned their guns towards PML-N when they talked to media at the parliament and regretted how PM Shehbaz and the ruling PML-N turned a deaf ear to the key ally by neither taking its input in budget nor apprising it what was coming peoples’ way on June 12 (today).

Surprisingly, Marri’s outburst came after the Shehbaz-Zardari meeting where the president “assured the prime minister of his support for the national development and achievement of fiscal targets”.

Despite showing displeasure for not being consulted, PPP sources said that the real issue between the two allies stemmed from the IMF’s proposal to impose an 18 per cent tax on all items as the party doesn’t want any taxes on the agriculture sector, especially on fertiliser, pesticides, tractors, and other agriculture produces on the grounds that its lawmakers cannot face the constituents after that.

In addition, the PPP leadership is unhappy over load-shedding, importing wheat at the wrong time and the inquiry results, and not giving relief to the agriculture sector in the upcoming budget.

Marri said that many PPP lawmakers belong to rural constituencies and they have to face difficulties when the farmers are not given any relief; when there is no relief on fertilisers, tractors, or electricity, saying all these concerns were raised in the party meeting.

“We will raise our concerns when public-importance projects [for provinces] are not included in the federal PSDP,” Marri said.

“We are a political party, we have an ideology and a manifesto, and we wanted to give input in line with our manifesto but when a political party is deprived of doing that then what is left for it.”

“Does the government want that PPPP should start protesting; does the government want us to express our anger about the way we have been treated on the floor of the house,” Marri didn’t mince any words before adding, “It’s up to the government now to look into it as the responsibility lies on it to do so.”

The PPP leader further regretted that the party was not expecting PM Shehbaz, with whom PPP worked as an ally in the previous 16-month stint, would also treat the allied partner the way it is currently being treated, saying that “we thought that Shehbaz Sharif was aware of our concerns and he would not only realise it but approach us. But, we are not seeing that kind of situation right now.”

She warned that if the prime minister and the federal government continue to marginalise PPP, the party would return to its roots, focusing on its people, ideology, and manifesto. She highlighted that the PPP’s commitment to the public includes providing relief through solar energy projects, but no progress has been made in this area.

Additionally, she reiterated that PPP had made promises to the agriculture sector and farmers, yet no relief has been provided there either.

To a question, if PPP would part ways with the federal government, Marri said that this question should be asked of the government, saying PPP has only shared its legitimate concerns and reservations and the same were raised in the party meeting, headed by Bilawal.

“We are giving a lot of space to the government and haven’t behaved unreasonably,” she said, adding that the party would meet again on Wednesday to contemplate the current situation. “If you [PMLN] treat us this way then we also have to see our constituencies, and people and ensure implementation of our manifesto,” she said.

Surprisingly, Marri while referring to the coalition partners ‘agreement’ reached before they formed the federal government incorporated the PML-N had assured that PPP’s input would be taken in the budget but regretted that “no input from our party has been taken in this budget; not even our viewpoint has been taken in this regard.”

In addition, Marri explicitly mentioned that the PPP had zero input in the federal PSDP.

Marri said that PPP tried to that the issues shouldn’t come out in public but PPPP wasn’t expecting the kind of treatment being meted out to it. Referring to the National Economic Council meeting where all four chief ministers fought their provinces’ cases, Marri said that the Sindh CM presented his case but PPP wants the ruling PML-N to address the concerns of all the provinces and not just of Sindh.

Once again, Marri said that the PPPP was not joining the federal cabinet yet but extending support to the government as the party believed that the same was necessary for bringing political and economic stability to the country.

Referring to the party meeting, she revealed that party leaders blasted the government’s current approach, adding that several concerns have come from Punjab province as – where PML-N is ruling with the help of PPPP and others.

She said that the government should understand the situation as the PPP chairman wants redressal of his party members’ concerns and reservations, reminding once that the power and all the portfolios were with the government and “its government’s responsibility now to see if it wants to keep having the support that it has from one of the biggest political parties; I leave it up to it if it wishes to talk.”

 

Khursheed Shah

Moreover, Shah also lashed out at the PMLN leadership for not taking PPPP into confidence over budget, the PM’s recent visit to China, and what has been decided with the IMF. “We are allies and should have been taken into confidence,” Shah lamented, saying the government should take along its allies. “We are completely in the dark about budget,” he said.

 

PM-President meeting

Meanwhile, an official statement said that PM Shehbaz and President Zardari discussed the country’s overall economic situation with a particular focus on extending relief to the people in the upcoming annual budget 2024-25. Federal Minister for Planning and Special Initiatives Ahsan Iqbal also attended the meeting.

During the meeting, President Zardari emphasised that the interests of the low-income and middle class should be protected in the annual budget. The statement said that he also assured the prime minister of his support for the national development and achievement of fiscal targets.

They both deliberated on the development projects to be proposed in the next budget. PM Shehbaz also apprised the President of his recent five-day visit to China.