Islamabad : All Pakistan Fertilizer Dealers Association (APFDA) has called upon the government to exempt fertilizer retail business from any new taxation in the next year federal budget to provide the dealers conducive environment to play their role to ensure these inputs to the growers in time and boost-up agricultural productivity of the country.
APFDA delegation, comprised Pattern-in-Chief , Mr Ghulam Ahmad , Chairman , Abdul Karim Executive Member , Rana Muhammad Iqbal (MPA) , Mian Danish ,Usman Sarwar and other senior members of the association . APFDA delegation made budget related appeals to State Minister for Finance, Bilal Azhar Kayani, during a meeting in Islamabad on Friday.
APFDA delegation informed the State Minister that the fertilizer dealers make marginal profit on sale of fertilisers to provide these inputs to the farmers in time and any new tax on this business will have negative impact and subsequently add to financial burden on the agriculture sector , which is already facing hard times. APFDA raised the issue of potential increase in turnover tax on the sale of fertilizers in the next fiscal year budget during the meeting.
APFDA had also raised the issues confronted with the fertilizer dealers in its budget proposal and appealed to the government to avoid imposing further taxes on the sale of fertilizers.
The government has proposed the increase in turnover tax on sale of fertilizers from 0.25 % to 0. 50 % in 2026-27 budget and it has created concern among the fertilizer dealers.
APFDA is trying to convince the decision-makers that addition in turnover tax on the sale of fertilizers will prove counterproductive and damage agriculture sector ‘s productivity.
APFDA ‘s arguements make great sense and the government should listen to their demands to exempt fertilizer sale from any taxes in the new budget .
Pakistan ‘s agricultural productivity is declining in the recent years , risking food security in Pakistan. The statistics suggest that the fertilizer sale is shrinking for the last couple of years due to less use of fertilizers by the growers and any new tax on the sale of fertilizers will make things worse and hit hard the farming sectors in coming years.
Speaking to NEWSMAN , Mr Ghulam Ahmad said “APFDA had a very productive meeting with the State Minister for Finance , Bilal Azhar Kayani , on the issue of proposed taxes on the sale of fertilizers and he was kind enough to give patient hearing to its demands” . He said the State Minister for Fiance promised to take APFDA delegation ‘s demands for exemption of new taxes in the sale of fertilizers at the highest level and have a favourable decisions to this effect.