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ISLAMABAD: Minister for Finance Miftah Ismail on Thursday declined to clear pending dues of Rs80 billion of the fertiliser sector but assured that their issues would be resolved as the government has almost streamlined the petroleum industry.
In a meeting with Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC) along with Federal Minister of Industries Makhdoom Syed Murtaza Mehmood, the finance minister clearly declined to clear the pending dues due to the economic crunch facing the country.
Given the current fiscal challenges, the finance minister informed the fertiliser sector that there was no way forward in clearing the outstanding subsidy and sales tax.
However, he added that to stop further bleeding of the industry, a sales tax exemption may be granted to urea. “This would mean no output sales tax and input sales tax to become part of the urea bag and its cost,” Mr Islmail said.
The fertiliser manufacturers informed the ministers that the urea price was reduced to Rs1,850 per bag of 20 kg on May 30.