Pakistan’s largest tractor manufacturer Millat Tractors Limited (MTL) has ceased production due to lack of clarity over taxation issues, the company said on Thursday.
Industrialists have raised concerns that the tractor manufacturing and parts industry is facing a severe crisis, posing a significant threat to the stability and future of a sector that plays a vital role in the national economy.
“We would like to inform all stakeholders that the GST on tractors is 10 percent, while the GST on all input raw materials is 18 percent, leading to a continuous accumulation of refunds,” the company said in a statement to the Pakistan Stock Exchange (PSX) on Thursday. “Despite Millat Tractors Limited (MTL) seeking clarification, the government has yet to provide any mechanism for refund claims payments. Consequently, MTL is now compelled to halt production until further notice.”
Millat Tractors, a prominent Pakistani agricultural machinery manufacturer based in Lahore, was founded in 1964. The company produces Massey Ferguson tractors in Pakistan, with a production capacity of 40,000 units.
Moreover, it is involved in the sale, implementation, and support of IFS applications both in Pakistan and internationally.
