Non-affordable tractors: Increase in GST to hit hard
An increase from the existing rate of 10% to 17% will be implemented from next year.
LAHORE:
The Lahore Chamber of Commerce and Industry (LCCI) called for a withdrawal of the decision to raise the rate of General Sales Tax (GST) on the tractor industry. An increase from the existing rate of 10% to 17% will be implemented from next year that would hit the agriculture sector, making thousands of skilled workers redundant. LCCI acting president Mian Tariq Misbah said that the tractor assemblers and their 300-plus vendors fear a severe drop in sales as a result of the massive hike in GST .“17% GST is to be paid by the country’s farmers that will further curtail their ability to purchase tractors,” said Misbah. Despite producing the cheapest tractor in the world, the Pakistani farmer is still not able to afford a tractor and requires support in the form of subsidies and loans from the government to purchase a tractor.
Published in The Express Tribune, December 10th, 2013.
The Lahore Chamber of Commerce and Industry (LCCI) called for a withdrawal of the decision to raise the rate of General Sales Tax (GST) on the tractor industry. An increase from the existing rate of 10% to 17% will be implemented from next year that would hit the agriculture sector, making thousands of skilled workers redundant. LCCI acting president Mian Tariq Misbah said that the tractor assemblers and their 300-plus vendors fear a severe drop in sales as a result of the massive hike in GST .“17% GST is to be paid by the country’s farmers that will further curtail their ability to purchase tractors,” said Misbah. Despite producing the cheapest tractor in the world, the Pakistani farmer is still not able to afford a tractor and requires support in the form of subsidies and loans from the government to purchase a tractor.
Published in The Express Tribune, December 10th, 2013.