FBR refuses to reduce Sales Tax on tractors

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FBR refuses to reduce Sales Tax on tractors

ISLAMABAD - Federal Board of Revenue has rejected a request by Pakistan Association of Automotive Parts & Accessories manufacturers (PAAPAM) but agreed to release pending sales tax refunds to Tractor manufacturers.

Ministry of Industries sources said a delegation of PAAPAM met Chairman FBR on March 12, 2013 in the Ministry of Finance to request for Sales Tax reduction from existing 10pc to 5pc on tractors.

They were of the view that this support from Government would enhance local production/ sale of tractors thus helping the tractor industry to sustain in the local market.

Chairman FBR however rejected their request on the plea that the present sales tax regime was decided in February 2012 in complete unanimity with all the stakeholders.

Therefore any change in the existing policy framework would require cogent reason and justification.

On the recommendation of Engineering Development Board, Chairman FBR agreed in principle to release pending sales tax refunds to tractor manufacturers which should overcome their financial and operational difficulties. EDB in this regard has also sent a formal request to FBR.

Courtesy: The Nation

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