On Sunday, the Federal Board of Revenue (FBR) proposed raising the sales tax on domestically built tractors from 10% to 18%. The Sindh Chamber of Agriculture was vehemently against this idea.
Senior vice president Nabi Bakhsh emphasized in a letter to FBR Chairman Muhammad Zubair the negative effects that such a raise would have on the agriculture industry, which is already facing many difficulties.
Farmers expressed serious worries about the proposed hike in the chamber’s correspondence, claiming that it will worsen their already-existing financial constraints.
The Sindh Chamber has recommended that the FBR lower the sales tax rate on tractors in order to encourage expansion in the agriculture industry rather than raising taxes.
In addition to reducing customs duties on imported tractors from 15% to 5%, the letter said, “We think that lowering the sales tax to 5% on tractors made locally is essential for supporting farmers during these challenging times.”
