Govt decides to reduce GST on tractor industry from 16% to 5%

A committee formed by the cabinet on Friday decided to reduce the GST on tractor industry from 16 percent to 5 percent so that the prices of tractors could be brought within the purchasing range of small landholders.
The committee meeting was chaired by Minister for Industries and Defence Production Chaudhry Parvez Elahi and was attended by Minister for Kashmir Affairs and Gilgit-Baltistan Manzoor Wattoo, Minister for Religious Affairs Khursheed Shah, Industries Secretary Aziz Ahmad Bilour, FBR Chairman Salman Siddique and representatives of Zarai Taraqiati Bank Limited (ZTBL), tractor and Pakistan Association of Automotive Parts and Accessories Manufacturers.
Elahi said a reduction in the rate of GST on tractors was a win-win situation for all stakeholders and would help low-income farmers to adopt modern ways of farming.
He said mechanisation of agriculture was the need of the hour and low-priced farm machinery would attract more and more farmers to upgrade their old and inefficient farming techniques.
Representatives of tractor and its vendor industry met Elahi in Lahore on Thursday and the minister promised to resolve their issues.
He also directed the representatives of the ZTBL to resume bank leasing of the tractors on easy installments to farmers to which they agreed.
The meeting was informed that suspension of bank leasing on tractors was also one of the reasons of drop in sales of tractors.
Elahi said the decrease in GST would cut the prices of tractors by rs 60,000 to Rs 90,000 which would boost sales and revenue for the Government.
He said the economy of Pakistan heavily banked on the agricultural sector of the country “therefore every step will taken to modernise and mechanise it”.