affanpervez
Minister (2k+ posts)
THE NATION
TRACTOR RATE TO GO UP AFTER BUDGET
LAHORE - The tractor manufacturers have decided to raise price of the unit by more than 4 per cent, as the finance ministry has rejected a request by tractor makers to maintain GST on present ratio of 10 per cent, it was learnt.
The second time upward revision in almost five months period by Rs 20,000 to Rs 25,000 is being made partly on the excuse of unprecedented raise in costs of various inputs following reduction in local currency value in comparison with other major currencies and mainly to pressurize the new government to refrain from hiking sales tax on tractors to the standard level of 16 per cent.
Industry sources said that jump in price will be effective from June 21, 2013, after the announcement of federal budget scheduled to be declared on 14th of this month.
They said that tractor companies earlier increased the price of tractors by 5 per cent in the wake of the hike in rate of General Sales Tax (GST) in January this year.
According to them, in January, the companies had increased the price of MF-240 by Rs 30,500 from Rs 610,000 to Rs 640,000, and price of MF-260 was jumped to Rs703,000 from Rs670,000, showing an increase of Rs33,500 per tractor. In the same way, the price of MF 385 was hiked to Rs1,533,000 from Rs1,460,000 showing a jump of 73,000 per tractor.
The government had reduced GST on tractors to 5 percent, from 16 percent, bringing down tractor prices to about Rs100,000, But tractor manufacturers did not pass on the impact to farmers.
Sources said that Ministry of Finance has rejected the request of tractor makers to cut Sales Tax from existing 10 percent or maintain it on present level in the upcoming budget.
They observed that reduction of sales tax to 5 per cent put the tractor industry and its allied hundreds of vending units across the country back on track, bringing tractor rates in the reach of small land-holders - a step forward in farm mechanization, maximizing per acre yield.
DAILY TIMES
REJECTION BY MINISTRY TO KEEP GST UNCHANGED TRACTOR MANUFACTURERS TO RAISE PRICE BY 4 PERCENT
LAHORE : The tractor manufacturers have decided to raise price of the agricultural machinery by more than 4.0 percent, as the Finance Ministry has rejected a request by tractor makers to maintain general sales tax (GST) on present ratio of 10 percent, it was learnt on Thursday.
The second time upward revision in almost five months period by Rs 20,000 to Rs 25,000 is being made partly on the excuse of unprecedented raise in costs of various inputs following reduction in local currency in comparison with other major currencies and mainly to pressurise the new government to refrain from hiking GST on tractors to the standard level of 16 percent.
Industry sources said that jump in price will be effective from June 21, 2013, after the announcement of federal budget scheduled to be declared on June 14. They said that tractor companies earlier increased the price of tractors by 5.0 percent in the wake of the hike in rate of GST to 10 percent from 5.0 percent in January this year.
According to them, in January, the companies had increased the price of MF-240 by Rs 30,500 from Rs 610,000 to Rs 640,000, and price of MF-260 was increased to Rs 703,000 from Rs 670,000 showing an increase of Rs 33,500 per tractor. In the same way, the price of MF-385 was hiked to Rs 1,533,000 from Rs 1,460,000 showing a jump of Rs 73,000 per tractor.
The government had reduced GST on tractors to 5.0 percent, from 16 percent, bringing down tractor prices by about Rs 100,000, helping the troubled local industry. But tractor manufacturers did not pass on the impact to farmers. Prices of tractors should have been reduced by Rs 100,000 per tractor but manufactures did not implement the decision in its true spirit.
Sources said that Ministry of Finance has rejected the request of tractor makers to cut GST from existing 10 percent or maintain it on present level in the upcoming budget. They were of the view that this support from government would enhance local production of tractors thus helping the tractor industry to sustain in the local market. They observed that reduction of GST to 5.0 percent would put the tractor industry and its allied hundreds of vending units across the country back on track, bringing tractor rates in the reach of small land-holders - a step forward in farm mechanisation, maximising per acre yield. They said that auto industry is again facing a steep decline in production and any change in GST regime at this point may backfire, leading to closure of industry. staff report
Price increase in January 2013
Tractor Previous Current Increase
MF-240 Rs 610,00 Rs 640,000 Rs 30,500
MF-260 Rs 670,000 Rs 703,000 Rs 33,500
MF-385 Rs 1,460,000 Rs 1,533,000 Rs 73,000
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