Incentive: Govt offers another subsidy on fertiliser

Adds phosphate variety to package, amount will be Rs196 per 50kg bag

ISLAMABAD: Following the subsidy on diammonium phosphate (DAP), the federal government, along with other concerned stakeholders, has allowed an additional subsidy on single super phosphate (SSP) for farmers under the Rs20 billion fertiliser subsidy package.

In this regard, the Ministry of National Food Security and Research issued a notification this past week by allowing Rs196 subsidy per 50 kg bag of SSP fertiliser and will continue till the pledged amount is exhausted.

However, the subsidy will be given only on the fertiliser manufactured by using imported rock as the provincial governments have urged the centre to not give subsidy on SSP manufactured from local rock and its phosphate content should not be less than 18%.

According to the notification, the subsidy shall be paid after the sale of bagged SSP fertiliser on the basis of sales tax invoice and sales tax returns submitted by the manufacturers and commercial importers.

The release of the subsidy amount shall be ensured within 15 working days of generating the sales tax invoice and the subsidy claim of each manufacturer shall be sent to the Ministry of National Food Security and Research.

Under the formula, the subsidy shall only be given to those commercial importers and manufacturers, who are registered tax filers before June 30, 2015.

Additionally, under the formula, the ex-Karachi price will be printed on each bag of SSP which include freight charges. Like the subsidy on DAP, the country would also be divided into 6-7 zones for determining freight charges.

Published in The Express Tribune, November 8^th, 2015.

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