Business
Millat Tractors hints at shutting down plant amid declining sales, GST dispute
MTL has informed its shareholders that till now it has not halted operations
Karachi: Millat Tractors Limited (MTL) has warned of shutting down its operations owing to lower sales and refund delays from the Federal Board of Revenue (FBR).
Pakistan’s largest tractor manufacturer shared the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.
The company informed its shareholders that till now MTL has not stopped operations and that it will inform the stock exchange if it happens.
“However, in order to clarify further, it is informed that GST on the tractor is 10% and the GST on all input raw materials is 18% resulting in a continuous stream of refunds and FBR has not issued any mechanism for payment of refund claims yet,” the company added. MTL further informed that it has already sought clarification from FBR in this regard.