ISLAMABAD, Feb 9: The government has levied a 15 per cent general sales tax (GST) on urea at the actual price level, Dawn has learnt here on Saturday .
Earlier, a GST of Rs30 was being charged at the subsidized price of urea, which was fixed at Rs200 per bag of 50kg urea.
A senior official in the ministry of industry said that the 15 per cent GST would be levied on the newly-fixed actual price of Rs330 per 50kg bag of urea. Thus a GST of Rs49.5 will be charged on each 50kg bag. Now the consumer will have to pay Rs20 more as GST.
The decision has been taken in line with an International Monetary Fund’s (IMF) conditionalities for getting the poverty reduction and growth facility.
This would, however, result in an increase in revenue, the source said, adding that it would lead to a rise in consumer price.
The government on September 3, 2001, through a presidential ordinance, had levied 15 per cent GST at import and manufacturing stages of all kinds of fertilizer.
The government is also considering to levy 15 per cent GST on all kinds of fertilizer at wholesale and retail stages as well.
The GST to be levied on fertilizers included: animal or vegetable fertilizers, mineral or chemical fertilizer (nitrogenous), mineral and chemical fertilizer (phosphatic), mineral and chemical fertilizer (potassium), mineral or chemical fertilizer containing two or three of the fertilizing elements including nitrogen phosphorous and potassium dyphorous penda- oxide, phosphoric acid, poly phosphoric acid, natural calcium phosphate and phosphate chalk.
A senior official told Dawn that the GST on fertilizers at retail and wholesale was unfeasible.
