Millat Tractors Association urges clear policy regarding GST
LAHORE: The Millat Tractors Association of Pakistan has made a strong appeal to the government to promptly provide a clear policy regarding General Sales Tax (GST) on tractors so that the closed plants of the tractor industry can reopen and unemployment can be reduced.
In this connection, a delegation of Millat Tractors Association of Pakistan, led by its Vice President Muhammad Naeem, held a meeting with Lahore Chamber of Commerce and Industry (LCCI) Senior Vice President Zafar Mahmood Chaudhry on Saturday to discuss the challenges facing this vital sector.
The delegation informed the Senior Vice President that due to the lack of clarity in the policy regarding General Sales Tax (GST) on tractors by the Ministry of Finance and the Federal Board of Revenue (FBR), several plants in the tractor industry have been shut down, potentially leading to the unemployment of millions of households. They further highlighted that, in a country where many mills and factories are already closed, unemployment and inflation have made life difficult for the public, and now even operational units are being forced to shut down.
“As of June 30, 2022, the GST on tractors was 5 percent, and the tax on parts was 17 percent. Currently, billions of rupees are owed by the FBR, which have yet to be paid. The FBR has stated that the tax is 5 percent on agricultural tractors and 18 percent on non-agricultural tractors,” they added.
The delegation further informed that the tax on tractors was eliminated from July 1, 2022, to June 30, 2024, but a 10 percent tax on tractors was re-imposed starting July 1, 2024. Now, the tax on parts is 18 percent and the tax on tractors is 10 percent; due to the lack of a clear policy from the FBR, uncertainty regarding refunds has arisen, they added.
On this occasion, the LCCI Senior Vice President also urged the government to take immediate steps to revitalize the tractor industry, which is currently facing severe challenges.
Copyright Business Recorder, 2024
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