Lahore August 23 2024: Millat Tractor Limited, the largest tractor manufacturer of Pakistan, shut its production plant due to working capital issues created by difference in General Sales Tax rates on input and product sales along with delay in refunds.
Share price of the company drops PKR 11.1 per share or 1.94 percent in today’s trading at Pakistan Stock Exchange.
“This is to inform all the stakeholders that GST on tractor is 10% and the GST on all input raw materials is 18% resulting in a continuous stream of refunds. The Government has not issued any mechanism for payment of refund claims yet, despite MTL seeking clarification. Resultantly, MTL is now constrained to stop production till further notice” states Millat Tractor in its filing to the Pakistan Stock Exchange.
Tractor sales drops 45 percent during the month of July 2024 when compared with sales during July 2023 while down 65 percent when compared with sales of previous month, according to data published by PAMA.
