KARACHI: Millat Tractors Ltd (MTL) will resume production activities on Thursday.
In a stock filing on Tuesday, the company said sales would continue to be restricted until the Federal Board of Revenue (FBR) clarifies the sales tax refund procedure and applicability.
MTL suspended tractor production on Aug 22 till further notice due to the government’s failure to issue a mechanism for payment of refund claims.
The general sales tax (GST) on tractors is 10 per cent and the GST on all input raw materials is 18pc, resulting in a continuous stream of refunds.
On Aug 12, the company warned that sales and bookings of tractors were limited and only being made to agri-loan customers. As a result, completely built-up units were piling up, and working capital was squeezing.
MTL assembled 979 units and sold 605 units in July versus 1,506 and 1,656 in July 2023.
Published in Dawn, September 4th, 2024
