Govt proposes new schemes for small scale growers in Budget 2017-18

1234
Govt proposes new schemes for small scale growers in Budget 2017-18

ISLAMABAD, May 27 (APP): In order to give further boost to
agriculture sector, the government in Federal Budget 2017-18 has
proposed a number of new supportive initiatives.
The government would launch a scheme in collaboration with
Zarari Taraqiatie Bank limited and National Bank of Pakistan for
small farmers with holdings of 12.5 percent.
The small land holders would be provided agricultural loans at
a reduced rate of 9.9 percent per annum.
Besides, small loan of up to Rs 50,000 per farmer will be
provided, whereas two million loans would be provided by ZTBL, NBP
and other banks.
In order to facilitate the farmers, the volume of
agriculture credit has been enhanced to Rs 1,001 billion from the
last year’s target of Rs.700 billion which will be an increase of
43%.
As a further measure to support farmers, the government has
already decided to sell the existing stock of imported Urea
fertilizer available with NFML at a concessional Rs .1,000 per
bag.
In order to create ease of disbursement of subsidy on DAP, it
has been decided that DAP will be subject to fixed sales tax. As
a result, GST is being reduced from Rs 400 to Rs 100. This will
have a subsidy impact of Rs.13.8 billion.
Through reduction in tax rates and subsidy the price of per
bag of Urea shall be maintained up to Rs 1,400 per bag in the FY
2017-18.
The government would continue provision of subsidized tariff
on agri-tube wells at the rate of Rs 5.35 per unit in FY 2017 to
provide cheap electricity for agri-tube wells and was estimated to
cost around Rs 27 billion in FY 2017-18.
The government has also proposed several tex relief measures
for agriculture sector and reduced the duty on the import of
agriculture sector.
It has been decided to reduce the customs duty and sales tax
at import stage to 0% 5 years on new and up to 5 years old combined
harvesters machinery.
GST on imported sunflower and canola hybrid seeds was
being removed, where as reduction of sales tax rate on imported
machinery for poultry sales tax rate reduced from 17% to 7% on
certain imported machinery for poultry.
Sales tax on import and local supply of agricultural diesel
engines between 3 to 36 Horse Power for tube-wells currently
having rate of 17% is proposed to be exempted.