15th Sep 2015 Prime Minister Nawaz Sharif said the government would bear the Rs 2.5 billion premium on the agricultural insurance which will benefit 0.7 million small farmers.
He said solar tubewells would be provided on mark up free loans to the farmers who own up to 12.5 acre of land. The mark up of seven years would be paid by the federal government with a cost of Rs 14.5 billion.
He said this would ensure a saving of Rs 1,600 and Rs 500 per day for the farmers running tubewells on diesel for five hours daily and on petrol for same duration, respectively
He mentioned that the electricity price for running tubewells at peak hours had been fixed at Rs 10.35 per unit and Rs 8.85 at off-peak hours. He said the sales tax on these bills amounting Rs 7 billion would be borne by the federal government.
The Prime Minister said the custom duty, sales tax and withholding tax on the agriculture machinery had been reduced from 45 percent to nine percent.
He said rice millers had been given full exemption on the turn-over tax for year 2015-16.
