The federal government is poised to eliminate sales tax exemptions on tractors and pesticides in the upcoming budget for 2024-25.
According to sources at NetMag, the Federal Board of Revenue (FBR), acting on recommendations from the IMF, has drafted proposals to end tax exemptions across various sectors, notably targeting tractors and pesticides.
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In the current fiscal year budget (2023-24), these sectors enjoyed exemptions, but under pressure from the IMF, the government is now considering withdrawing them to bolster tax revenues from these areas.
FBR estimates that if approved by Parliament, this move could generate an additional Rs. 30 billion in tax revenue.
The proposed plan by the government is expected to not only raise the prices of tractors but also pesticides, significantly increasing the financial burden on farmers.
