ISLAMABAD: The country’s farming community has strongly reacted to the government decision for not extending GST concession on tractors to those farmers who will unable to provide Pass Book of their land.
Federal Board of Revenue SRO 563 issued on April 29, 2022, whereby it was stated that only those farmers can get the tractors at 5 % GST, who will provide copy of Pass Book or land holding record verified by the concerned Land Revenue Office which implies that in all other cases 17% Sales Tax will be applicable.
According President Pakistan Kissan Ittehad, Khalid Khokhar, new SRO is not practical as it will create problems for the farmers in the following way: (i) extra cost and time consuming to get the copy of land records and verified it from the land revenue authority; and (ii) in case of joint family system, mostly lands are not transferred to the youth, who are doing practical agriculture and buy tractor and farm machinery. So, they have to pay 17% sales tax as they are not land owner.
Khalid Khokhar said that the SRO does not cover the farmers, doing faming on rental and lease lands and agro-rental-service providers having no lands or purchased farm machinery on bank loan against urban or any other non-agriculture property.
He maintained that in many areas of the country the land records are not regularly updated. Farmers in this case will pay the extra tax and price.
“The situation arose after the new SRO is very upsetting for the farming community as they are already under severe economic pressure due to increase in Agri. Inputs prices and water shortage,” he said, requesting Prime Minister, Minister for National Food Security, Minister for Industries and Finance Minister to immediately take notice of this issue and advise the concerned FBR authorities to immediately withdraw this SRO 563.
He suggested that 5 % sales tax rate be ensured on tractors being key requirement for Agriculture and a source of self-employment for rural youth.
Copyright Business Recorder, 2022
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