Millat Tractors Limited (MTL), one of Pakistan’s leading tractor manufacturers, has announced that it will resume production starting from September 4, 2024. However, the company has stated that sales will continue to be restricted until there is clarification on the Sales Tax refund procedure from the Federal Board of Revenue (FBR).
This decision was formally communicated to the Pakistan Stock Exchange (PSX) through an official notice under Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the PSX Rule Book. The company emphasized the need for clear guidelines on the applicability and refund process of the Sales Tax to ensure smooth sales operations.
In the notice, MTL urged the PSX to inform the TRE Certificate Holders of this update accordingly.
Millat Tractors had previously halted production due to unresolved issues related to the Goods and Services Tax (GST) refund claims, which arose from a disparity between the GST on tractors (10%) and the GST on input materials (18%). The resumption of production is expected to provide some relief to the industry, but the ongoing restriction on sales remains a concern for stakeholders.
The industry now awaits further instructions from the FBR to move forward with full operations.
Leave a Comment