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FBR to review rate of turnover tax imposed on seed supply companies

FBR to review rate of turnover tax imposed on seed supply companies

ISLAMABAD: Federal Board of Revenue (FBR) has decided to review the rate of turnover tax imposed on seed supply companies, it is learnt here.

Sources told Customs Today that it is expected that turnover tax imposed on seed supply companies to farmers to be reduced, however, the board also planned to review the tax rate and make some rationalization, sources confirmed.

According to sources, 1.25 percent of turnover tax has been imposed on at least 650 companies which are supplying seeds on local level to farmers where the seeds association has demanded to review and reduce the rate of turnover tax imposed on local supply of seeds, however, the board has now planned to review the rate and after review it would be decided to reduce or rationalize the turnover tax, sources added.

It is important to mention here that 600 to 700 local seed companies are working in the country and if the government facilitates the seed companies, not only the farmers will benefit in terms of lower crop production cost, also the country’s foreign exchange reserves will be saved.