The Multan Chamber of Commerce & Industry (MCCI) has demanded early issuance of SRO regarding production of MTL 20000 to 25000 and AGTL 11000 to 15000 tractors by the end of financial year 2011-12 in the light of approval made by the Economic Co-ordination Committee (ECC) on 20th January, 2012. President of MCCI Anis A Sheikh said.
"We are thankful to Prime Minister Yousaf Raza Gilani and Pervaiz Elahi, Federal Minister for Industries and Production for reducing GST from 16 percent to 5 percent on tractors manufactured in the country and restoring agricultural loans through Zarai Taraqiati Bank Ltd (ZTBL) for purchase of tractors on soft terms and conditions with concessional interest rate.
He said that it would reduce the prices of tractors by Rs 60,000 to Rs 125,000 per tractor, depending on the horsepower. The officials of tractor assemblers have said that if everything goes smoothly the tractors' production will pick up and they have plans to produce MTL 20000 to 25000 and AGTL 11000 to 15000 tractors by the end of financial year 2011-12. This would greatly help to restore the unemployed labour, increase the cultivated area, and reduce poverty and food shortage in future. The delay in making GST decision has caused an economic dent for Rs 12 billion in loss of production. It is also requested that Multan Chamber of Commerce & Industry being a premier chamber of southern Punjab and the automobile vending industry in particular may be taken into confidence. Anis said reduction in general sales tax of tractors would remove difficulties being faced by tractor manufacturers and vendors while employment of thousands of workers would also be secured. He said that the government has taken a step in the right direction as it would give boost to the morale of tractor manufacturers, vendors and other allied industries. He said that availability of tractors at cheaper prices would also help increase production of agriculture in the country.
The MCCI President has welcomed the decision to cut general sales tax on tractors by 11 percent and said it would give relief to tractor manufacturers, vendors and thousands of people attached with this industry. It would also give the much-needed boost to the agriculture sector, he added.
Earlier the sales of tractors had dwindled steeply after the imposition of 16 percent GST as it made the tractors costlier for the farmers who are also suffering from high fertiliser prices and low commodity prices of their produce. The tractor manufacturers remained under severe pressure in the previous year due to slack in demand of tractors and major manufacturers halted their production due to piling up of tractor stocks. Due to this brutal and ill-conceived decision, the sales of tractors went down drastically in the previous year and tractor manufacturers managed to sell 6,000 tractors only after imposition of 16 percent GST.
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