Tractor assemblers demand ST refunds to save industry

The tractor industry has urged the Prime Minister of Pakistan Imran Khan to take notice of imminent near collapse of tractor manufacturers as entire tractor industry including its 350 vendors are currently closed down and need a government stimulus for revival.
The symbolic permission given to tractor industry allowing them to commence production cannot function in isolation unless and until a proper notification allowing its allied vendors and traders to produce and transport components is not given in parallel. This is urgent and the need of the time if we have to save the harvesting and the upcoming sowing season from a total collapse.
In a statement, CEO Alghazi Tractors, Mohammad Shahid Hussain said the tractor assemblers were already fighting for survival even before the coronavirus episode occurred, which needless to mention has multiplied their problems.
"Tractor manufacturers are only asking for expeditious and urgent payout of their genuine sales tax refunds that have been in pending to them for long.
Immediate refunds would improve the cash flow of the industry and its value chain," he said. In addition, this is the time where a subsidy on Tractors for farmers would come handy as the affordability of framers at this junction is highly compromised. This is needed if we wish the mechanization process not to come to a halt.
Tractor production is stalled ever since the lockdown so it's zero since that time while YTD the industry is down at least around 23-24%. As for refunds, Alghazi Tractors alone have around Rs 700 800 million under claim.
Moreover, he added, under the current scenario, it would be a necessary step to withdraw additional sales tax that was imposed lately. He also appealed the federal and the provincial governments to give cash incentives to the farmers to buy the tractors against bank loans on easy installments so that the crop yields may improve and the industry can get back on survival track.-PR