Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) in a meeting with the Federal Minister for Industries Ghulam Murtaza Khan Jataoi apprised him of the crises faced by the tractor sector. PAAPAM delegation led by its Chairman Mumshad Ali told the minister that tractor sales have declined resulting in the closure of Millat Tractors, AGTL and 300 vending industry located in the Lahore and Karachi vicinity and associated with this industry.
Currently 10 percent GST is levied on tractors which amounts to Rs 60,000-Rs 160,000 and is collected by the government on the sale of tractor. The Association Chairman in a statement said that the highly localised industry, is the back bone of the Pakistani Auto Engineering base and contributes towards creating employments (300,000) and contributing Rs 7-8 billion in taxes per annum.
The tractors sale has been declined to half as compared to last year mainly because of erosion of buying power of the farmers. No money has been allocated for tractors in the Rs 300 billion Federal Kissan Package. Besides, the provincial governments of both Punjab and Sindh have also not launched the tractor subsidy schemes they announced in their respective finance bills. He warned the minister that if corrective steps are not taken the 300 vending units of Lahore and Karachi will go towards closure resulting in massive unemployment and loss of precious revenue to the government.
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