Lahore: Pakistan Industrial & Traders Associations Front (PIAF) while welcoming the proposed cut in General Sales Tax (GST) on tractor industry, has said that further decrease in GST would be a bigger favour, not only to this industry but to the agriculture sector. “Lowest General Sales Tax on tractor industry would pave way for agri revolution in the country and would ensure food security for the masses.”
In a press statement issued here Tuesday, Chairman PIAF Malik Tahir Javed said that proposal of bringing down General Sales Tax on tractor industry to 10 from 17 percent would save tractor industry from devastation.
It would be better if Federal Board of Revenue and other policy making authority take stakeholders on board while taking industry related decisions.
He said that increase in General Sales Tax on tractor industry had not only dropped the sale of tractors but also forced tractor manufacturers to close down their operations.
Chairman PIAF said that policy makers must have awareness regarding the impacts of rise in taxes or duties on tractor industries but unfortunately no such exercise was carried out.
He said that Pakistan lags far behind India in crop yield, crop intensity and number of tractors per hectare. Pakistan today needs 800,000 more tractors to match India in per hectare tractor population. He said that an industry with installed capacity of 100,000 units per annum is expected to close the current financial year with less than30,000,units.
The PIAF Chairman said the drop in tractor sales means unemployment for thousands of skilled workers who work in hundreds of factories producing tractor parts for the tractor assembly plants. Employment in rural Pakistan will also be curtailed, as tractor is a major source of employment generation in the form of drivers, mechanics, and spare parts/lubricant suppliers, he added.
Malik Tahir Javed said that cut in General Sales Tax on tractor industry was a good omen and it would help revival of tractor industry.