HYDERABAD: The Sindh Chamber of Agriculture (SCA) has rejected levying of income tax on agriculture sector, deploring that it is being imposed at the instance of International Monetary Fund (IMF).

This sector is already faced with multifaceted crisis and, therefore, such a decision should be rescinded, according to a statement issued by the SCA after its meeting held here on Saturday under the chairmanship of its President, Miran Mohammad Shah.

The meeting decided to coordinate with other organisations of growers in the country to launch a campaign against this decision. It observed that the federal government was planning imposition of massive income tax on the agriculture sector “under IMF’s dictates”.

It believed that this tax would lead to “economic murder” of growers. “Such a tax is recovered on ‘income’ or ‘profit’. When there is no income and no profit currently being earned by growers, then how can this tax be recovered from them,” the SCA argued, and pointed out that increased cost of agriculture inputs had left growers without any income or profit.

It explained that currently, the cost of all sorts of agricultural inputs, including machinery, seed and fertiliser, as well as diesel, were skyrocketing with the result that growers were facing a financial crisis. Besides, it added, yields had considerably declined.

It said that the agriculture sector was suffering heavy losses and under these circumstances, growers could not pay income tax.

The SCA meeting expressed its concern over the current situation of cotton crop because of the recent rise in temperatures, up to 43-44 degrees Centigrade.

“Hardly 10 maunds per acre yield is being anticipated this season because cotton crop cannot sustain a temperature exceeding 35 or 36 degrees Centigrade,” it maintained.

If Pakistan Agriculture Research Council did not introduce cotton varieties that could sustain higher temperatures, then this crop in Sindh would vanish, it warned.

It recalled that last year, 800,000 bales were produced in Sanghar which had declined to 400,000 now.

Sindh Minister for Agriculture Mohammad Bux Mahar had promised a rate of Rs11,000 per 40kg for cotton but Rs6,500 per 40kg was being offered by ginners, it noted.

It urged the minister to fulfill his promise and also the provincial government to help salvage the cotton crop.

Published in Dawn, July 28th, 2024