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02 Jun, 2025
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Sindh farmers urge FBR to cut tractor duties in budget 2025-26 to boost agriculture
@Source: dailytimes.com.pk
Farmers in Sindh are urging the Federal Board of Revenue (FBR) to reduce customs duties and sales tax on tractors in the upcoming 2025-26 federal budget. The Sindh Chamber of Agriculture (SCA) has requested that the customs duty on imported tractors be lowered from 15% to 5% to ease financial pressure on the struggling farming community. In a formal proposal submitted to FBR Chairman Rashid Mahmood, the farmers also called for a reduction in the sales tax on both locally assembled and imported tractors—from the current 14% down to 5%. They emphasized that this is not a call for tax exemption but for fair treatment, similar to tax rates applied to other sectors like automobiles. SCA Senior Vice President Nabi Bux Sathio highlighted that Pakistan’s agriculture sector, despite being a major contributor to the GDP and employing millions, continues to suffer from limited government support. Farmers are battling rising costs, climate change impacts, water shortages, and poor crop pricing, all of which hinder productivity and sustainability. The SCA also proposed broader tax reforms in their submission. These include eliminating Additional Customs Duty (ACD), gradually removing Regulatory Duty (RD), and restructuring the customs tariff to support long-term agricultural growth. These steps, they argue, would make essential farming equipment more accessible. Currently, medium- and small-scale farmers struggle to afford tractors and other machinery due to high taxes and limited financing options. Reducing these costs could significantly boost crop yields and overall agricultural efficiency, especially in rural Sindh, where farming is the main livelihood. As the FBR prepares the federal budget, officials have confirmed that these proposals are under review. Farmers and agricultural bodies hope the government will respond with practical steps to support a sector that remains the backbone of Pakistan’s economy.
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