LCCI welcomes proposal to reduce GST

LCCI

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) on Monday welcomed the Ministry of Industries and Production for its proposal to bring down the general sales tax (GST) rate on tractors to 10 percent from the existing 17 percent, a statement said.

 

LCCI President Engineer Sohail Lashari said that due to the levy of 17 percent GST, the production of tractors had stopped. Before the imposition of sales tax, the industry had achieved a volume of 72,989 units during 2009-10, it said.

 

The production declined to 48,898 units during 2011-12 due to the levy of 16 percent sales tax and its reduction to five percent during the said period and recovered a bit to produce 51,977 units with 10 percent sales tax in 2012-13, the statement said.

 

The increase in sales tax to 17 percent from 10 percent jacked up prices of 50HP tractors by Rs45,000, Lashari said.

 

Approximate price increase in other variants, ie, 60HP and 75HP are Rs50,000 and Rs65,000, respectively. Similarly, in 85HP category, the price increase due to raise in sales tax is Rs107,000, which will be borne by the consumers, he said.

 

Keeping in view the farmers’ purchasing power and increase in price of tractors, the volume of tractor manufacturing industry has decreased. Zarai Tarraqiati Bank Ltd had already significantly reduced loans for purchase of tractors since April 2010. Tractors financed by ZTBL declined from 24,596 units in 2009 to 6,455 units in 2013.

Source: The NEWS

Related Informations