It grandfathered everybody who received
subsidies at that time so that they could get
subsidies forever, whether or not they grow anything.
Second, they would also commit to "decouple" agricultural
subsidies from production and exports.
Other industrial parks have similar or even more advantageous mixes of loans,
subsidies and tax exemptions:
Along with tax rebates,
subsidies have become a potent political tool by which government tries to woo voters.
Farmers, who are residents of Sindh, must own more than 25 acres of land will be awarded the said
subsidies.
He explained that the goal is to reach social justice and eliminate the leakage of money that occurs in the
subsidies system, which causes the loss of billions as a result of the multiplicity of stages and entities working on the implementation of the system.
Momentum has been building to get these
subsidies removed.
It is recommended to reduce the overall level of
subsidies in agriculture, directing most of the
subsidies to public goods that increase the productiveness", reads the report.
While the primary objectives of energy
subsidies is to redistribute hydrocarbon wealth, promote industrial growth and improve the standards of living of GCC citizens, they also bolster wasteful energy consumption, deplete oil resources and reduce oil revenues, not to forget the environmental damage linked to excessive energy consumption.
Subsidies in general are aimed at protecting the poorest in society, but energy
subsidies tend to be much more beneficial to the upper middle classes, who have no need of
subsidies," Slim said.
Subsidies also distort resource allocation by encouraging excessive energy consumption, artificially promoting capital-intensive industries, reducing incentives for investment in renewable energy, and accelerating the depletion of natural resources.
Subsidies on gasoline and bread may be ending, but that doesn't mean that
subsidies are a thing of the past by any means.
