Agricultural experts and farmers have opposed the government’s proposal to increase the sales tax on tractors from 10% to 18%, stating that this could severely impact the mechanization of the agricultural sector.
According to a report by Dawn, Nabi Bakhsh Sathio, Senior Vice President of the Sindh Chamber of Agriculture in Hyderabad, has written a letter to the Chairman of the Federal Board of Revenue (FBR).
In the letter, he called for a reduction in taxes on tractors, asserting that this would support the agricultural sector and promote the use of locally manufactured agricultural machinery.
Nabi Bakhsh Sathio also requested a reduction in duties and sales tax on imported tractors while advocating for the current sales tax rate to remain unchanged for locally manufactured tractors.
He stated that the Sindh Chamber of Agriculture represents the farmers and agricultural community of Sindh.
The letter highlighted that the agricultural sector plays a key role in the national economy, contributing 24% to the Gross Domestic Product (GDP) and employing 37.4% of the total workforce. However, this sector is currently facing numerous complex issues.
Challenges faced by farmers and cultivators are exacerbated by a lack of investment and collaboration, negative effects of climate change, and dwindling water availability.
Additionally, farmers have been severely affected by their inability to obtain fair prices for their produce.
Some reports indicate that the FBR has proposed increasing the sales tax on locally manufactured tractors, raising concerns about the additional burden this will place on farmers.
