Millat Tractors Limited stops production

KARACHI: Millat Tractors Limited (MTL) has stopped production indefinitely due to lack of clarity over taxation issues. In a statement to the Pakistan Stock Exchange (PSX) on Thursday, the company said, “This is to inform all stakeholders that GST on tractor is 10 per cent and that on all input raw materials is 18 per cent, resulting into a continuous stream of refunds. The government has not issued any mechanism for refund claims payments so far, despite MTL seeking clarification. Resultantly, MTL is now constrained to stop production till further notice.”

Millat Tractors is a Pakistani agricultural machinery manufacturer based in Lahore. Founded in 1964, it is the manufacturer of Massey Ferguson tractors in Pakistan with a production capacity of 40,000.