by AMER SIAL
Even though the finance team and fertiliser industry failed to sort out their differences on the mechanism to provide fertiliser subsidy to growers during the next financial year, but the government has still assured them that it will release the outstanding amount of Rs 15 billion in subsidy for the outgoing financial year.
An official source said that the government wanted the fertiliser manufacturers to share half of the cash subsidy of Rs 160 per bag on urea; however, this proposal was opposed by the industry. The government is considering slashing 5 per cent GST on urea to zero during the next financial year.
The government also offered to provide adjustment of 17 per cent GST on DAP but that too was not sorted out, the source said, adding that another meeting would be held to settle this issues. The finance team, unconditionally, has assured full release of fertiliser subsidy for the current financial year to the manufacturers.
An official statement said, “A delegation of the fertiliser manufacturers called on the Finance Minister Ishaq Dar, on Saturday. The delegation presented budget-related proposals and tax-related matters of the fertiliser sector to the finance minister, which were thoroughly deliberated upon during the meeting.”
The minister said that government would accord due consideration to the fertiliser manufacturers’ proposals. He said the government is undertaking extensive consultations with all stakeholders during the budget preparations in line with the present government’s tradition during the last four years.
The minister urged the manufacturers to ensure an adequate supply of urea and DAP for the farmers during the ongoing Kharif season. He highlighted the vitality of cash subsidy the government is providing on urea in order to provide relief to the farmers and to support the country’s agriculture sector. He underlined that the agriculture sector had grown by 3.46 per cent in FY 2016-17 showing a marked improvement compared to FY 2015-16.
Special Assistant to Prime Minister on Revenue, Haroon Akhtar Khan, finance secretary, secretary EAD and senior officials of the Ministry of Finance and EAD participated in the meeting.
The fertiliser manufacturers’ delegation included representatives of ENGRO, Fauji Fertilizer Company, Fauji Fertilizer Bin Qasim, Fatima Fertilizer Company, AGVEN and United Agro Chemicals.
Meanwhile, it said a delegation of the All Pakistan Textile Processing Mills Association (APTPMA) called on Ishaq Dar. The delegation was led by Zubair Motiwala. The delegation presented APTPMA’s budget-related proposals and tax-related matters to the finance minister, which were discussed in detail.
The minister appreciated the proposals and feedback of APTPMA, and said that these would be given due consideration in the finalization of the budget process. He said the textile sector is an important part of Pakistan’s economy and is evident from the Prime Minister’s Package of Incentives for Exporters–worth Rs 180 billion announced earlier this year. He encouraged the textile industry to make productive use of the package in order to boost the country’s exports.
Earlier, the Fertilisers Importers Council had written a letter to Prime Minister Nawaz Sharif over the non-payment of subsidy claims. The letter stated that the government had promised the DAP [fertilisers] importers for payment of subsidy claims within 15 days of the receipt submission, but the payments are pending for more than 11 months now.
The letter stressed, “As of May 26, 2017, subsidy claims of approximately Rs 1 billion are pending payment to importers for all imported DAP sales from June 2016 to April 2017.”
