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KARACHI:The fertiliser industry has asked the government to reduce the imbalance between input and output general sales tax (GST) on urea and di-ammonium phosphate (DAP).Urea is produced out of natural gas and when companies buy gas they pay two kinds of GST - 5% on feed g
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adiletten original fuel gas. At present, the fertiliser companies are paying GST of Rs109 on the input of every bag of urea while they collect only Rs35 from consumers, which results in an imbalance of Rs74. They say the price of a urea bag is Rs1,830, on which the companies on
air force uomo ly recover 2% while the rest is left to be financed by government subsidy. Companies always pass the GST on to consumers, said Shankar Talreja, an analyst at Topline Research. In the case of fertiliser, the government gives subsidy to fill the gap, but it has not been paying the difference, which has piled up to billions. The accumulation of refundable GST on urea has reached Rs21.18 billion, said the Fertiliser Manufacturers of Pakistan Advisor
