PESHAWAR: Qaumi Watan Party (QWP) Chairman Aftab Ahmad Khan Sherpao on Wednesday rejected the International Monetary Fund’s (IMF) proposal to double the Federal Excise Duty (FED) on fertilizer to 10 percent and to impose a 5 percent FED on agricultural pesticides.
In a statement issued from the party’s secretariat, Watan Kor in Peshawar, he warned that the move would have far-reaching negative effects not only on the agriculture sector but also on those associated with it. He said such measures would further burden the already struggling farming community.
Sherpao accused the government of using the IMF’s tax collection targets as a pretext to economically strangle farmers. He said the continuous increase in the prices of fertilizer and pesticides had pushed the vital agriculture sector to the brink of collapse.
“The government must refrain from accepting such demands, as our agriculture sector is already in decline and the economic condition of farmers has deteriorated alarmingly,” he said.
The QWP chief added that the country’s economy largely depended on agriculture, yet the government was using the IMF as a shield to impose unjust taxes on this crucial sector. “This is one of the main reasons why the production of major crops has been declining every year, which is a matter of grave concern,” he noted. Sherpao urged the IMF to review its strategy and link its demands to expanding the tax net instead of overburdening an already distressed farming class. “Targeting agriculture to meet revenue goals will only worsen the hardships of those dependent on this sector,” he added.