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KARACHI: Federal Minister for Industries Chaudhry Pervez Elahi has assured the vendors and tractor makers of resolving the lingering issue of 16 per cent general sales tax as early as possible.
In a meeting with the delegation of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), led by its chairman Syed Nabeel Hashmi, held in Lahore on Thursday, the minister said he was fully aware of the situation.
Nabeel Hashmi told Dawn that the minister had assured the stakeholders of taking every step to restore the production activities.
The makers of Fiat tractors had already suspended its production from December 15, 2011, while the makers of Massey Ferguson tractors had partially resumed its production from January 10, 2012 after suspending production from December 20, 2011.According to figures of Pakistan Automotive ManufacturesAssociation (PAMA), only 47 tractors of Fiat were sold in December 2011 as compared to 1,414 units in November 2011. The makers of Fiat tractors (Al Ghazi) produced only 727 units in December 2011 as compared to 1,555 units in November 2011. T he July-December 2011 production and sales plunged to 3,663 and 3,660 units as compared to 12,308 and 12,233 units in the same period of 2010.
Millat Tractors produced and sold 963 and 724 units of Massey Ferguson tractors in December 2011 as compared to 2,460 and 2,211 units in November 2011. Production and sales in July-December 2011 fell to 9,760 and 9,005 units as compared to 20,411 and 20,510 units in the corresponding period of 2010.
Nabeel said that vendors and manufacturers had urged the minister to settle the GST issue on urgent basis so that farmers and growers could also resume their purchasing activities and the industry could restart its production at full capacity.
