The government is likely to announce an incentive package in the budget for the year 2004-05 for the development of indigenous formulation and manufacturing of pesticides in a bid to enhance agricultural productivity.
In a press statement Chairman Pakistan Crop Protection Association (PCPA), Ijaz Ahmad Chaudhry claimed that Expert Advisory Committee of the Ministry of Commerce on pesticides has unanimously resolved that GST should not be levied on agriculture inputs including pesticides.
'No country in the world has levied such tax on agriculture inputs, while the GST being charged at the rate of three-percent from the unregistered firms should also be withdrawn', he added.
The committee has put forward its recommendation to the authorities concerned so as these could be incorporated in the next budget, he maintained.
With a view to providing encouragement to the local pesticides' manufacturers, five- percent protection duty on the import of pesticides should be levied so that quality production could be ensured within the country.
The committee also recommended reduction in duty to five percent on spraying equipment, he stated.
The committee also proposed reduction in customs duty by five percent on the imports of solvents and emulsifiers, which are not being manufactured locally, he added.
Ijaz Chaudhry appreciated the government policies and measures specifically adopted for the encouragement and development of local pesticide industry.