ZAFARWAL: August 29, 2024: All Pakistan Fertilizer Dealers Association (APFDA) has announced to continue its struggle till the government withdraws punitive section 236-H for imposition of withholding tax on the sale of fertilizers.
Addressing a press conference here, APFDA Pattern- in- Chief, Mr Ghulam Ahmad, called upon his fellow fertilizer dealers to keep up their struggle against the government decision of imposition withholding tax on the sale of fertilizers till it reverses the decision .
The government decision of including the sale of fertilizers in withholding regime is like a double-edge sword. It will jeopardize the trading of fertilizers in the country as impact of the rate of withholding tax is more than the profit/ margin of the dealers on the sale of fertilizers and hence implementable. In the case , the government does not pay heed to protesting APFDA’s demand, hundreds of thousands of traders linked with fertilizers business will become dormant. Simultaneously, the growers will be another victim of withholding regime.
The farmers who are already begging to the government for relief in the given situation with input cost of per acre crop is exceeding to their income they will be further devastated with addition burden of hike in the price of the fertilizers and will not be in a position to sustain it. In any case, the government decision is not only negation of its declared policy aimed at protecting agriculture sector from unjustified taxation and other undue liabilities , but also a cause of risking Pakistan’s food security.
Its high time that the government should hear to APFDA and reverse its decision of including the sale of fertilizers in withholding regime.
The fertilizer dealers have observed a countrywide shutter down strike yesterday. The dealers are demanding withdrawal of section 236-H on the sale of fertilizers. Under Section 236-H of the Finance Bill 2024-25, the dealers are required to collect withholding tax from the growers in two slabs. For the growers who are non-filers are required to pay withholding tax at 2.5 % and for the growers who are filer have to pay withholding tax on purchase of fertilizer at 0.5 percent. Since majority of the growers are non-filers , almost everyone of them is to pay 2.5 percent withholding tax on purchase of fertilizers. The government decision to include fertilizers sale in section 236-H and force the dealers to collect 2.5 ;percent withholding tax on the sale of fertilizer will add around Rs 300 to a bag of urea price and will add to the growers community’s woes.
Imposition of withholding tax on the sale of fertilizers will cause irreparable loss to the agriculture sector. Fearing negative impact and systematic complications , APFDA has rejected imposition of withholding tax on the sale of fertilizers. The government decision to include the sale of fertilizers in withholding regime is a dangerous move. It will damage the agriculture sector and subsequently undermine Pakistan’s exports of agri produces which can deprive Pakistan of huge foreign exchange.
Mr Ghulam Ahmad has warned to the government that its indifference towards APFDA demands can lead to the fertilizer dealers’ indefinite strike. He made it clear to the authorities that APFDA will not accept the decision of bringing the sale of fertilizers in withholding regime come what may.
