Lahore: Pakistan’s largest tractor manufacturing company Millat Tractors Limited closed its operation due to financial difficulties.
According to details, Pakistan’s largest tractor manufacturing company closed its operations due to financial difficulties. Millat Tractors Limited is a factory that sells 3,000 tractors monthly.
After the closure of the plant, there will be a shortage of tractors in the market which will increase the price. Tractors are also likely to be more expensive for farmers after fertilizer.
Millat Tractors has written a letter to the Pakistan Stock Exchange informing that tractor manufacturers are facing severe financial difficulties. All the concerned ministries have also been informed in this regard.
Shamshad Ali, former chairman of Pakistan Association of Automotive Parts Manufacturers, says that FBR has not released billions of rupees to the tractor industry so far in terms of sales tax refunds.
Shamshad Ali said that the tractor industry is suffering huge loss due to non-receipt of sales tax refund on manufacturing of one unit.
He said that the industry has to pay 17% sales tax on tractor parts, only 5% is collected from the buyer on the sale of tractor, ie the industry is carrying the burden of 12% sales tax on the sale of a tractor. ۔
The former chairman said that the sales tax of Rs. 6 billion was incurred on the sale of one tractor every two years only on Millat tractors.
He further said that the government should immediately issue sales tax refund to the tractor industry so as to avoid further loss due to closure of Millat Tractors plant.