Government of Pakistan asked to allow import of reconditioned tractors

Ministry of Food, Agriculture and Livestock (MINFAL) has made this demand in its proposal for the federal budget 2006-07. "There is a wide gap between supply and demand of tractors in the country. The prices are also high and farmers face problems in getting tractors from the manufacturers in time," said the MINFAL budget proposal.

The ministry also expressed its dissatisfaction over the implementation of 'President's Agricuture Package', which was announced in 2004. The food and agriculture authorities are of the view that the President's Package should be implemented in letter and spirit. The Zarai Taraqiati Bank Limited (ZTBL) has failed to pass on this relief of the package to farmers so far.

The budget proposal included the demands made by National Assembly's Standing Committee on Food, Agriculture and Livestock, said the official. The committee led by Makhdoom Ahmad Alam, MNA drafted the budget proposal.

Under the President's Package, the ZTBL was required to give relief to agriculture credit borrowers on principal borrowed amount of Rs 500,000 and not on the outstanding amount at a later stage. In the present situation, this relief has not been passed on to farmers by the ZTBL authorities.

The MINFAL and the NA committee took serious note of conversion of prime agricultural land into real estate and housing schemes. They asked the federal and provincial governments to save prime agricultural lands in the country.

The ministry and the committee were unanimous in making another demand of removal of General Sales Tax (GST) on fertilizers and pesticides. The Ministry showed concern on the increasing price trend of agricultural inputs, especially fertilizer and pesticides. This situation is badly impacting the performance of the agriculture sector.

The official said that MINFAL held a number of meetings on GST issue with the Central Board of Revenue (CBR), which is strongly opposed to the proposal. The revenue authorities are of the view that GST charging on agriculural inputs is part of overall government taxation policy. If the GST exemption was granted to fertilizer and pesticides, then other sectors have plausible reasons to make such demands.

According to the calculations of MINFAL, that due to GST and other taxes, the prices of several pesticides are more than 100 to 120 percent higher than their cost and freight (C&F). If the C&F price of pesticide is Rs 200, the farmer is getting that around at Rs 450 due to high value of taxes.

The MINFAL has also been arguing with the CBR that GST should be charged only at one stage. The CBR imposes taxes on raw material as well as the finished or manufactured agricultural inputs, the official said. This policy should be reviewed, said the official.

The MINFAL and NA committee also said that given unprecedented shortfall in the availability of water in the canal system, the government should give a 50 percent rebate on the electricity-run tubewells to prevent damage to crops.

The price of diesel has rendered the mechanized agricultural practices unsustainable and it has become beyond the capability of farmer to afford the use of tractors, tubewells and other farm machinery. Therefore, 50 percent rebate on diesel consumed for agriculture should be allowed. It has been recommended that system of colored diesel may be introduced for the farming community.

(Source: dailytimes.com.pk)