Govt may hike agri input taxes

The government may double the excise duty rate on fertiliser to 10% and introduce at least 5% new tax on pesticides in the budget, the two critical inputs for the crops that may get expensive amid heightening challenges for the agriculture sector. Among the other proposals, it is considering starting limiting the tax-free status currently available to the Special Economic Zones from fiscal year 2025-26 and reducing the super income tax rate by 2% to 8%, said the tax officials. However, the reduction in the super tax rate, which could cost Rs28 billion to the government, would depend upon finding other tax avenues, they added. The proposals are part of the government's taxation measures that it wants to introduce in the new budget to achieve the overall Rs14.3 trillion tax target in fiscal year 2025-26, according to the senior tax officials.