Sales tax on tractors has been reduced from 16 percent to 10 percent. “To promote the agriculture sector, we are proposing concessions for encouraging tunnel farming by removing customs duty on import of plastic coverings and mulch film, anti-insect net and shade net. Sales tax on high irrigation equipment and equipment for green house farming is also proposed to be exempted,” the federal finance minister Ishaq Dar while announcing the federal budget 2014-15 in the lower house said.
In Makran Division, Gilgit-Baltistan, Swat district and Fata regions, agriculture produce suffers great losses for lack of processing and transport facilities. The government will introduce a policy to support processing projects in these areas. These units will enjoy duty and tax-free import of machinery not locally manufactured and will also have access to SBP LTF facility and five-year tax holiday. Additionally, a concessionary long-term financing facility shall be provided to them through the State Bank of Pakistan.
The government has also decided to provide 50 percent airfreight subsidy for the horticulture produce from Gilgit-Baltistan.
The government has also announced to provide Rs500 billion credit to farmers during 2014-15. “During one year, our government has increased credit availability to agriculture sector from a targeted Rs315 billion to Rs380 billion. Credit to agriculture is critical for enhancing farmers’ productivity. We are conscious of the difficulties faced by the farmers in getting credit through the loan sharks,” the minister said.
He announced that the government would introduce Rs30 billion ‘Credit Guarantee Scheme’ loaning small farmers a micro credit of up to 100,000 rupees. Through the State Bank of Pakistan, the government will provide guarantee to commercial, specialised and micro finance banks for up to 50 percent loss sharing. The scheme will cover farmers having up to 5 acres irrigated and 10 acres non-irrigated land holdings that will benefit 0.3 million farmer households/families.
Another 2.5 billion rupees ‘Reimbursement of Crop Loan Insurance Scheme (CLIS) Premium’ will be initiated to insure farmers with landholding of 12.5 acres against natural calamities, climatic changes and plant diseases and crop risks. From this budget, the scope of CLIS premium reimbursement is being enhanced up to 25 acres. All farmers obtaining loans for production of 5 major crops are eligible to benefit from this scheme. Overall, 700,000 farmers households/families will benefit from this scheme.
Livestock Insurance Scheme is another venture of the government to mitigate the risk of losses of small livestock under which farmers can get financing for up to 10 cattle heads. The scheme will cover livestock insurance in case of calamity and disease. The scheme will benefit 100,000 livestock farmer households/families. An allocation of Rs300 million has been made in the current budget for the scheme.
In order to develop a mechanism for establishment of quality warehouses, silos, cold storages and cold chains, and linking it to finance through warehouse receipt system, the government, through the SBP’s help, will develop a regulatory mechanism for establishment of a warehousing clearing system and introducing special incentives for potential investors.
This scheme will cover all existing or new warehouses, silos and cold storage for farmers, aggregators, traders and other value chain players. Under the scheme, Rs1 billion will be invested as GOP-equity for establishment of a PPP-company to regulate and monitor this system. Additionally, the State Bank has decided to provide the LTF facility for the establishment of storage and cold-chain facilities.
The government has allocated Rs1071.300 million for 19 projects of the National Food Security and Research division for fiscal year 2014-2015 under Public Sector Development Programme (PSDP). Of this, Rs740 million have been allocated for 10 ongoing schemes while Rs331.135 million will be spent on nine new schemes.
No comments:
Post a Comment