Minister vocalizes disapproval towards IMF's proposal of imposing higher taxes on the agricultural sector.
KARACHI — SINDH MINISTER EXPRESSES ALARM OVER IMF'S PROPOSED TAXES ON AGRICULTURAL SECTOR
Sindh's Minister of Agriculture, Muhammad Baksh Mahar, has raised serious concerns over the International Monetary Fund's (IMF) proposal to impose a 18% General Sales Tax (GST) and raise Federal Excise Duty (FED) on fertilizers, pesticides, and agricultural machinery.
In a statement, Mahar argued that the IMF's demand was both unfair and detrimental to the farming community, with potentially disastrous consequences for the country's agriculture sector and farmers. "The IMF must refrain from suggesting additional taxes on the agriculture sector," he asserted.
The minister stressed that the agricultural industry was already grappling with challenges caused by climate change, water scarcity, and low crop prices. He warned that the proposed taxes could lead to a substantial increase in agricultural costs, undermining food security and potentially triggering a new wave of inflation.
Mahar underlined the dire straits faced by farmers across the country and urged the federal government to persuade the IMF, highlighting the importance of the agriculture sector. He emphasized that instead of imposing additional burdens, agricultural facilities should be prioritized to support farmers.
With these new taxes, farmers might struggle to cope with the increased operational costs, potentially reducing their ability to invest in their farms and impacting crop yields. The resulting high food prices might lead to inflation, affecting households, particularly those in Pakistan where food expenditure is a significant portion of monthly expenses.
The proposed taxes could also contribute to inflationary pressures due to the impact on food prices, which is a crucial factor in the Consumer Price Index (CPI) in many nations, including Pakistan. Additionally, concerns over food security have been raised due to the potential reductions in agricultural productivity caused by increased input costs that could lead to staple food shortages.
As the IMF's proposal is causing considerable unrest among farmers, Mahar stated his vehement opposition to any such measures. "The agricultural sector needs support, not added hardships," he confirmed.
Copyright Business Recorder, 2025
- The Sindh Minister's vehement opposition to the IMF's proposed taxes on agricultural sector is rooted in concerns over their potential impact on food security and inflation.
- If implemented, the increased costs for farmers due to the IMF's suggested taxes on fertilizers, pesticides, and agricultural machinery might contribute to a new wave of inflation, primarily affecting households in Pakistan where food expenses are significant.
- Rather than imposing additional taxes on the agriculture sector, it's crucial for the IMF and the federal government to prioritize supporting farmers and agricultural facilities to maintain food security and prevent potential inflationary pressures.
