The government has proposed special incentives for the Agriculture sector in the federal budget 2023-24 including duty exemption on the import of seeds and abolishment of sales tax on plant saplings, combine harvesters, dryers for agricultural products, no-till-direct seeders, planters, trans-planters, other planters and bovine semen.
The annual target for agriculture loans is proposed to expand from Rs. 1,800 billion to Rs. 2,250 billion.
Proposals also include a concessionary tax rate of 20 percent on the banking company’s income for additional advances to agriculture and an exemption on importing shrimps/prawns/juveniles for breeding in commercial fish farms and hatcheries.
In order to encourage textile exports, a 5 percent regulatory duty on locally-made synthetic yarn is recommended to abolish. The government has also recommended a 1 percent final tax rate through the online platform to promote agriculture commodities for indirect exporters.
The finance bill also recommends Rs. 10 billion for concessionary agricultural loans and blanket tax exemption for five years to agro-industrial units in rural areas having annual turnover of more than Rs. 800 million.
The government also recommended allocating Rs. 6 billion for subsidy for Urea import and Rs. 10 billion additional to provide low-interest loans to small landholders in cooperation with provincial governments.