Tractor industry: Govt asked to clear refunds of Rs3b
He said tractor manufacturers were charging a reduced 5% sales tax on the sale of tractors
Believes sales tax reduction will revive the industry. PHOTO: FILE
LAHORE:
The piling up of sales tax refunds has become a major concern for tractor manufacturers as it continues to nullify the impact of supportive measures taken by the government to improve financial health of the farming community, said Pakistan Automotive Manufacturers Association (Pama) director general in an appeal to the government on Thursday.
“Currently, the tractor industry’s outstanding and genuine refunds are hovering around Rs3 billion, leading to huge operational challenges as the cost of doing business is increasing with the rise in refund claims,” a statement quoted Pama Director General Abdul Waheed as saying.
He said tractor manufacturers were charging a reduced 5% sales tax on the sale of tractors against 17% input tax being paid on the purchase of components both at domestic and import stages. “Since input tax is much higher than output tax, the refunds are consistently mounting.”
Published in The Express Tribune, November 11th, 2016.
The piling up of sales tax refunds has become a major concern for tractor manufacturers as it continues to nullify the impact of supportive measures taken by the government to improve financial health of the farming community, said Pakistan Automotive Manufacturers Association (Pama) director general in an appeal to the government on Thursday.
“Currently, the tractor industry’s outstanding and genuine refunds are hovering around Rs3 billion, leading to huge operational challenges as the cost of doing business is increasing with the rise in refund claims,” a statement quoted Pama Director General Abdul Waheed as saying.
He said tractor manufacturers were charging a reduced 5% sales tax on the sale of tractors against 17% input tax being paid on the purchase of components both at domestic and import stages. “Since input tax is much higher than output tax, the refunds are consistently mounting.”
Published in The Express Tribune, November 11th, 2016.