ISLAMABAD: Farmers and agriculturists have asked the government not to implement a proposal seeking increase in sales tax on tractors from 10 to 18 per cent, claiming that it may lead to a serious blow to mechanisation of the agriculture sector.

Nabi Bux Sathio, senior vice president of the Sindh Chamber of Agric­ulture, Hyderabad, has written a letter to the FBR chairman, demanding a reduction in taxes on tractors as it would support the agriculture sector and promote indigenisation of other farm machinery.

Mr Sathio also dema­nded reduction in the import duty and sales tax on imported tractors and continuation of existing sales tax rate on locally-manufactured tractors.

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He said that Sindh Chamber of Agriculture is the representative body of the farming and agricultural community of Sindh.

The letter said that the agricultural sector plays a key role in the country’s economy, contributing 24 per cent to the gross domestic product and employing 37.4pc of the total workforce.

However, the sector is currently grappling with a myriad of complex issues.

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These issues include lack of investment and support, the adverse effects of climate change, and the dwindling availability of water, exacerbating the challenges faced by farmers and agriculturists.

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Moreover, farmers have been severely impacted by the inability to secure fair prices for their produce.

In addition to these hardships, some reports have suggested that the FBR has proposed increasing the sales tax on locally manufactured tra­ctors. The move is feared to burden the already struggling farmers.

Despite a notable surge in the domestic tractor industry, there remains a substantial gap between the actual availability of tractors and the required horsepower per acre, further underscoring the challenges faced by farmers in accessing essential agricultural machinery.

Published in Dawn, September 23rd, 2024