ISLAMABAD, June 10: The CBR on Saturday reduced the minimum value-addition from 30 per cent to 15pc for the levy of GST on pesticides at import stage.

The decision was made public through a sales tax notification by amending the budgetary notification SRO 553 of 2006.

With the reduction in minimum value for GST, the price of pesticides would further decrease for the farmers.

Presently, sales tax on import and local supply of pesticides was charged at the standard rate of 15 per cent sales tax was payable on each stage of value addition.

The CBR was of the opinion that the fixation of value for GST purpose at import stage was made after reports that the unregistered dealers and distributors of pesticides, although charging sales tax on supply of pesticides, were pocketing the same. On the one hand burdening farmers and on the other hand causing loss to the exchequer. This payment of ST at import stage would absolve the distributor and dealers of the liability of charging, thereby directly benefiting the farmers.