Al Ghazi Tractors slams refund holdup

KARACHI: Al Ghazi Tractors dismayed over massive outstanding sales tax refunds, bringing the company near to shutdown.

“We are barely surviving the situation and if funds are not released by the government instantly to improve the cash flow, the shutdown may become inevitable,” Shahid Hussain, chief executive officer at Al Ghazi Tractors said in a statement.

Hussain said the industry has been pleading the government to address the anomaly of input tax versus output tax that leads to completely imbalanced and massive accumulation of refund claims, which stand at around Rs2 billion for Al Ghazi alone.

“Serious attention is therefore needed with speedy action from government authorities to save us from irreversible damage,” he added. “It is shocking to hear at this junction that the government of Punjab is contemplating to import used tractors in Pakistan which would not only be a huge burden on our foreign exchange but also hurt the local manufacturers.”