FAISALABAD: Pakistan is an agricultural country and its future is directly linked with this sector but unintentionally policies are framed which are detrimental to the promotion of mechanized and corporate farming in the country, said Engineer Ahmad Hassan, former vice president Faisalabad Chamber of Commerce & Industry (FCCI) and Convener FCCI Standing Committee on R&D.

He said that the government should give maximum incentives to the farmers so that they could achieve the ultimate objective of food security.

He expressed concern over the closure of a leading tractor manufacturing unit which would have far reaching negative repercussions on the agriculture sector. He said that the share of agriculture in national GDP is 24% despite the fact that 90% farmers are illiterate and have small land holdings.

“Most of them are unaware of the taxation system,” he said and added that oblivious of the ground realities the government has imposed sales tax and then further increased it without consulting the stakeholders. He said that earlier the tractor manufacturers were bearing the taxes from their own profit but increase in it has made the survival of the industry difficult in the prevailing circumstances.

He said that this step has shattered our dream to make Pakistan the food basket of South Asia which would also trigger massive unemployment. He said that earlier 10% sales tax was imposed on the tractor parts which has now been unilaterally enhanced to 18%. “It has forced Millat Tractor to close down its unit”, he said and added that it has also put at stake the existence of 200 units manufacturing parts and other appliances for the tractor industry.

Copyright Business Recorder, 2024