STAFF REPORT IBD: The federal government has notified the reduction in sales tax on tractors from 16 per cent to 5 per cent with immediate effect.
The sales tax will be charged at 10 per cent effective from January 1, 2013 and standard rate shall be applicable with effect from January 1, 2014. The Millat Tractors Limited, in an information sent to the Karachi Stock Exchange last week, said that this decision has very positive impact on demand and sale of tractors as the gradual increase in sales tax rate will be absorbed and accepted by the market.
It is to be mentioned here that the tractors production had come down drastically following the imposition of 16 per cent sales tax on tractors sale as these prices had gone beyond the range of farmers.
However, the sale of tractors would certainly increase in the country after the significant reduction of sales tax on tractors.