ISLAMABAD: In a development that will be regarded as a relief to the farming community, the federal government has transferred Rs10 billion to the State Bank of Pakistan (SBP) to distribute among fertiliser manufacturers as subsidy on diammonium phosphate (DAP).
An official at the Ministry of National Food Security and Research confirmed the development. The meeting was chaired by the federal minister for national food security and research and attended by officials from finance ministry, ministry of industries and production, Federal Board of Revenue (FBR), ministry of petroleum and representatives from various fertiliser manufacturing companies to review the implementation progress on the subsidy issue.
“The subsidy amount of Rs10 billion was transferred last week to the SBP for payment to fertiliser manufacturers and the bank will gradually distribute the funds,” officials of the finance ministry were quoted as saying.
The remaining 50% of the total subsidy amount is to be transferred by the provincial governments of Punjab and Sindh.
It was also agreed in the meeting that the FBR will adjust the subsidy amount in the General Sales Tax (GST) on the import of DAP within 15 days of completing relevant documents.
Both sides agreed that the Ministry of Finance will transfer the subsidy amount to the FBR, which will then be adjusted with the GST against the import of DAP, whereas local manufacturers of DAP will have to claim the subsidy amount after production.
Published in The Express Tribune, October 7th, 2015.
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