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GST rate on tractors slammed

GST rate on tractors slammed

ISLAMABAD: Pakistan China Joint Chamber of Commerce & Industry (PCJCCI) President Shah Faisal Afridi has said that the levy of unnecessary rate of sales tax will only lead the tractor industry of Pakistan to complete destruction.

He said that the tractor industry is producing 95 percent tractor parts locally, generating employment opportunities besides contributing significantly to the national exchequer in the shape of taxes.

He compared GST rate imposed on tractor in India against that in Pakistan, which has remained 5 per cent since 2009. While in Pakistan the rate has increased to as much as 10 per cent since that time and now it’s even expected to be 17 per cent from January 01, 2014. “This anti- industry policy is not comprehended while we are facing daunting economic challenges and worsened GDP growth rate,” he added.

Afridi said that revolutionary steps on war footings will enable us to combat the ongoing economic crisis. “Our farmer is still far behind in terms of per hectare crop yield, which is 4.7 tons in China and 7.7 tons in the UK while only 2.6 tons in Pakistan, the lowest in the region. If we compare, the available farm power (HP) per hectare in China it is 3.38, in Japan it is 7 and even in our closest neighbour India, it is 2.5 while in Pakistan it is only 1.5. This is primarily due to low mechanization vis-a-vis other factors,” he added.

“We do require 800,000 tractors to match per hectare HP of India and ensure food security for the nation, he added. He urged the government to make tractor affordable for the Pakistani farmers for increased rural employment, significant raise in the national kitty, solid agricultural mechanization policy to facilitate import substitution through deletion programme, foreign exchange saving and hence a prosperous Pakistan,” he said.