SIALKOT - The manufacturers of agriculture implements and machinery have appealed to the government to withdraw 16 percent General Sales Tax (GST) on agriculture tools and machinery for the promotion of the industry.
In an interview with The Nation Muhammad Iqbal Mughal, Executive member of Pakistan Agricultural Machinery Implements Manufacturers Association (PAMIMA) and Executive member of Engineering Development Board said that due to levy of 16 percent GST on agriculture machinery the manufacturers of agri-tools and farmer community were confronted with multifarious problems.
Though the government had reduced GST from 16 percent to 5 percent on tractors it still charges 16 percent GST on agricultural machinery and inputs,” he said.
Iqbal Mughal disclosed that sale of agri-tools and machinery had been decreased up to 60 percent due to the imposition of GST, adding that farmers were prefer to use traditional modes of agriculture because they are unable to purchase new machinery for farming. Under the prevailing situation 16 percent GST should be withdraw for the promotion of local industry as well as agriculture sector,” he stressed. He appealed to the government to exempt agri-tool and machinery from GST for the smooth growth of the industry and facilitation the manufacturers.
A progressive manufactures while expressing his views said that the Punjab government should take initiatives for the modernization and tracking it on modern production lines. Asif Muhammad said that Daska was a famous and had a special repute for the production of agricultural inputs with traditional techniques and without any support of the government catering to the needs of domestic farmers and cultivators while agriculture tools were also being exported to South Africa, Afghanistan, Middle East, Sudan and Zimbabwe. Due to the imposition of 16 percent GST on agricultural machinery and implements, the sale had drastically went down,” he claimed. He pointed out that Farm Mechanization for Food Security scheme was initiated by the Punjab government and due imposition of GST the growers were reluctant to purchase new machinery and doing farming with traditional modes.
According to available information there, are 96 small and big agri-tools manufacturing units functioning successfully in and around Daska of 60 units are producing complete machinery while the rest were producing components of the agriculture machinery.
The industry is manufacturing fully automotive tools and catering to the needs and requirements of farmers. The machinery like wheat reaper, thrashers, multipurpose reaper machines and land laser levellers besides fodder cutters and wheat sowing machines are being manufactured in the area.
It is to be noted that Daska is the pioneer in manufacturing the wheat straw chopper and rice stubble chopper machines and the industry is now producing modern machinery to facilitate grower community of the Punjab.
The manufacturers engaged with the industry have started producing hi-tech agriculture machinery on their own resources and Punjab government should take steps for imparting training to the small growers about utilization of agricultural machinery for enhancing per acre yield of crops as well as the utilization of hi-tech machinery would help reduce sowing problems of the farmers.