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In a letter sent to the committee by the company, it was stated that due to liquidity issue faced by the Government, sales tax refunds are not being released in a timely manner i.e. three days from the claim sanctioned, instead, due refunds are released in tranches with delay of several months. As of today, more than Rs 5 billion of Tractor industry are stuck up with FBR.
"The Company is currently facing liquidity challenges and incurring huge financial cost due to non-refunded AGTL's due sales tax refunds by the authority to the tune of Rs 2.3 billion approx." AGTL also requested FBR to issue the refunds of over Rs 5 billion to the tractor manufacturers to resolve their liquidity crisis.