Govt Likely to Levy Sales Tax on Tractors, Pesticides in Upcoming Budget

The federal government is likely to withdraw sales tax exemptions on tractors as well as pesticides during the upcoming budget 2024-25. Sources told ProPakistani that FBR on the recommendation of IMF has prepared proposals withdrawing the tax exemptions for various sectors, including tractors as well as pesticides. The government during the current year budget 2023 24 has exempted these two sectors, but now, on the recommendation of IMF, it proposes to withdraw exemptions to get more taxes from taxes from these sectors. Sources said that FBR has estimated to collect Rs. 30 billion in taxes if the proposal is approved by Parliament. Sources said that the government proposed a plan will not only increase the prices of tractors but also the pesticides due to which the burden on farmers will increase manifold.