Federal Finance and Revenue Minister Miftah Ismail said on Saturday that the development of the agricultural sector is at the top of the government’s agenda, he has decided to remove duties and taxes on different agricultural tools, including seeds and agricultural machinery.
He reaffirmed the commitment of government enterprises to modernize and uplift the local agricultural sector on modern lines and to provide special incentives for agricultural mechanization to improve production per acre of all major and minor crops to meet to local needs.
Addressing the post-budget press conference, the minister said the government has offered special tax and duty relief on different agricultural tools and machinery to promote and develop the agricultural sector.
The government, he said, has allocated 21 billion rupees in the 2022-2023 Federal Budget to increase crop yield, in addition to boosting the livestock sector.
The Minister said that the Ministry of National Food Security and the Ministry of Research and Planning, in consultation with the provinces, have also drawn up a three-year strategy for the development of agriculture. The strategy aimed to address the impact of climate change challenges on the agricultural sector, in addition to improving the production of all major and minor crops, oilseeds and pulses for the prosperity of farming communities across the country. countries and to achieve sustainable agricultural growth.
The other objective of the initiative, he added, was to promote smart agriculture to achieve self-sufficiency in agricultural products, in addition to value addition and agricultural transformation to make the sector more market-oriented. profitable and competitive in local and international markets.
The minister said the government has also proposed removing sales tax on farm inputs and farm machinery, including tractors and other implements, in addition to different seeds, including corn, canola and sunflower and rice, were also exempt from sales tax.
Miftah Ismail said the government has also introduced relief measures on agricultural machinery and logistics. Customs duty on agricultural machinery used for irrigation, drainage, cultivation and harvesting has been removed, he added.
Machinery related to crop harvesting and processing, greenhouse cultivation and plant preservation, and other instruments were also exempted from customs duties, he added.
In addition, materials used in agricultural industrial units and machinery manufacturing have also been exempted from customs duties, the minister said.
The minister said the government has also introduced measures to increase domestic oilseed production from $700 million to $1 billion to reduce the reliance on the imported edible oil bill. Edible oil prices have experienced a quantum leap in the international market.
He said special incentives would be introduced for the production of corn, mustard, canola and other oilseeds to reduce reliance on expensive imported edible oil. It would also increase agricultural income for local farmers, he added.—APP