Tax burden on farmers, concessions for sugar industry: Markazi Kisan League

LAHORE: Markazi Kisan League (MKL) Chairman Chaudhry Zulfiqar Ali Olakh has strongly criticized the government’s decision to export the surplus stock of 300,000 metric tons of sugar imported last year. He said importing sugar in the name of controlling prices, granting tax and duty exemptions, and then re-exporting it after failing to sell it in the local market was a clear reflection of poor planning and policy failure.

He said the government had imported the sugar through the Trading Corporation of Pakistan. Despite exemptions from taxes and duties, the imported sugar proved more expensive than locally available sugar. Efforts to persuade sugar mills to purchase the imported stock also failed. The costly and substandard sugar could not find buyers in the domestic market.

Chaudhry Zulfiqar Ali Olakh said farmers were already facing severe economic difficulties, while consumers were struggling with rising prices. Despite these challenges, government policies continued to place additional burdens on the agricultural sector.

He said the government was considering taxes on agricultural produce brought to markets, even when farmers brought small quantities of vegetables for sale. At the same time, the sugar industry was being offered tax exemptions, concessions and subsidies on sugar imports and exports.

He termed the policy a clear double standard, saying it was unfair to tax farmers while extending benefits to specific sectors. He called on the government to disclose the total cost of the imported sugar, details of tax exemptions and subsidies, and the burden placed on the national exchequer. He also demanded that those responsible for the policy decision be identified and held accountable.

He urged the government to adopt transparent, equal and farmer-friendly policies for sugar and all agricultural commodities.