Kissan Board Pakistan (KBP) has urged the government to immediately abolish sales tax on agricultural inputs and levy tax on actual income from the agriculture. This demand was raised by the KBP President, Sardar Zafar Hussein Khan while speaking at a meeting of the board, convened to discuss the budget 2011-12, said a spokesman, here Tuesday.
Zafar urged that agriculture income tax should be levied on an income of over rupees 500,000. He feared that a budget of rupees 975 billion deficit would become a nightmare for the people of Pakistan. He also feared there would be repeated increase in the prices of agricultural inputs. He was of the view that sales tax levied on fertiliser, tractors and pesticides would decrease the purchasing power of small farmers.
He claimed that 85 percent farmers would not be able to use DAP fertilisers due to increase in its prices and levy of sales tax. He also claimed that different countries of the world are getting good results by giving subsidy to the agricultural sector. However, in our country, rulers have a plan to 'kill this sector by abolishing subsidies'. KBP President urged that subsidy on agricultural inputs should be restored to ensure availability of food items on cheaper rates in the country.