LAHORE: The First Executive Committee meeting of newly formed Pakistan Hi-Tech Hybrid Seed Association “PHHSA” held at Lahore and chaired by Founder Chairmanship Shahzad Ali Malik and attended by overwhelming majority of 22 Executive Committee Members. Detailed Agenda and range of matters discussed, resolved or proposals made for constitution of special committees on important issues.
The Chairman briefed on future plan of action for the advocacy and promotion of the Hybrid Seed Sector and allied technology. He said we have now big responsibility to deliver to meet the aspiration of our members and align our goals with the National economic agenda.
He said it is incumbent upon the Members of the Association to work for the common objectives of the Hi-tech Hybrid Seed sector and our aim is to create congenial business environment through ease of doing business and friendly regulatory framework.
PHHSA while terming it the last nail in the coffin rejected imposition of 17% sales tax on Seeds which will negatively impact the access to quality seeds due to increased cost to seed industry, farmers and end users. This may lead and discourage use of hybrid seed and reduce yield of major crops like cotton, Rice, Wheat, Maize, vegetable and edible oil etc.
The levy of 17% sales tax has created unrest amongst all stakeholders especially Rice Exporters Association of Pakistan and All Pakistan Textile Mills Association, Crop Life Association, Farmers Associations and FPCCI and Pakistan Hi-Tech Hybrid Seed Association.
It is misfortune in the very first adventure for PHHSA soon after grant of trade body license on February 8, 2022 faces biggest challenge to resist this sales tax levy by giving logical and convincing argument to the decision makers.
PHHSA is committed to achieve import substitution and production of local quality seeds at affordable prices and explore export targets provided Government patronize the sector by introducing proper incentives schemes and regulatory reforms.
He said during the recent years the pace of new Hybrids is slow in Pakistan only because of lack of regulatory and fiscal incentives and there seems challenges for PHHSA to act as game changer for turning local production of Hybrid Seed which will require huge investment on R&D.
He urged the Government to immediately withdraw the 17% sales tax on seed sector which is backbone of agriculture and GDP of Pakistan having direct bearing on the livelihood of poor farmers and middle class depending mainly on agriculture sector and produce.
The PHHSA EC members strongly criticized the levy of sales tax which will non-productive.
PHHSA executive committee had detailed deliberations and devises a strategy to persuade FBR Chairman, Finance Minister, Food & Agriculture Minister and the Prime Minister of Pakistan for withdrawal of this sales tax levy which was on uncalled for as oppose to the hefty incentives and regulatory reforms in the development in the Hybrid Seed Sector in the neighboring country India and also Thailand.
The PHHSA EC members also discussed the hurdles and restrictions imposed by the local administration during Wheat Seed Transportation within Tehsils, Districts and Province in the wake of Government wheat procurement activity and matter be taken up at the highest forums to stop this unwarranted intervention to save the Seed Sector.
The Chairman, PHHSA said that there is Zero Sales Tax on Seeds in India and same in Thailand and other seed exporting and importing countries and why Pakistan being the agriculture dominated economy opted to levy sales tax.
He said PHHSA is ready to sit on table and present its logical point of view to convince Government decision makers and seek withdrawal on cogent grounds.
