Pakistan Govt All Set to Impose 10% Duty on Import of Tractors in Budget

[2012-05-31 10:07:01]


In yet another development, the government is all set to impose 10 per cent duty on import of tractors in order to give it some duty protection in upcoming budget 2012-13, say sources.

The imposition of duty on import of tractors will go a long way to boost local tractor industry and could further enhance the sale of locally manufactured tractors and bring down its prices.

Sources familiar with development told Online on May 29, 2012 that government did want to impose 10 per cent duty on import of tractors because local industry was significantly global competitive. Currently, the import of tractor is zero rated but now government has proposed to give some duty protection to tractor industry by imposing duty on its import. "There are different levels of high duty production for almost all local industries including buses, cars and motorcycles but the import of tractors is exempted from any duty at present and its import is allow on zero-rated," said sources, adding that there was also no trend in the world to give subsidies on foreign products but government of Pakistan had been giving Rs.20, 0000 subsidy per tractor.

The sources further said that the government had already reduce general sales tax (GST)on tractors from 16 percent to 5 per cent to help tractor manufacturers, hundreds of vending units and the cash-starved farming community, however, the rate of GST will be brought to 5 percent in next four to five years. Reduction in GST had made tractors cheaper by Rs60, 000 to 100,000 per unit.

"Industry and vendors are now satisfied as the government had taken a step to clear a confusion which led to a decline in tractor sales and left some 20,000 people related to the industry jobless," added the sources.

It is relevant to mention here that the tractors production in 2001/02 stood at 23,801 units that peaked in 2006/07 to 54,052 units remained almost stable during 2007/08 at 53,703 units and surged to 59,968 units in 2008/09 when the auto industry went in deep recession. In 2009/10 tractors production surged to72, 989 and remained stable at 72,261 in last fiscal year 2010-11.During first nine months (July-March) of current financial year 2011-12 tractors production declined to 27,131 unites.

FBR attaches all bank account of PTA to recover Rs.3.6 b. ISLAMABAD: The Federal Board of Revenue (FBR) has attached all Bank accounts of Pakistan Telecommunication Authority (PAT)in an attempt to recover outstanding tax liabilities which owed Rs.3.6 billion on account of income tax.

According to an official handout issued here on on May 29, 2012, FBR in its ongoing campaign to recover outstanding tax liabilities against various companies, the Large Taxpayers Unit (LTU), Islamabad has attached all Bank Accounts of the Pakistan Telecommunication Authority (PTA) which owed Rs.3.6 billion to the exchequer on account of Income Tax.

"The PTA was served with recovery notice under Section 138(10 of the Income Tax Ordinance 2001, to deposit the outstanding liabilities by 28th of May 2012 which it failed to do so," it said. Accordingly, various teams were formed by Chief Commissioner, LTU, Islamabad to recover the amount from PTA through attachment of bank accounts and its receivables from mobile operators, wireless local loop (WLL) operators, Long Distance & International (LDI) operators, land line (LL) operators and Ministry of Information Technology.

Earlier this week, LTU Islamabad had attached bank accounts of Pakistan Mobile Communications' (Mobilink) and blocked its imports to recover through suppliers of the company, which included other telecom companies as well. Consequent upon Mobilink's decision to avail Tax Surcharge and Penalty Waiver Scheme by FBR, the LTU Islamabad has agreed to resolve the issue of recovery of outstanding tax dues amicably. Revenue of Rs. 2.5 billion will be paid by Mobilink by 30th May, 2012 due to prompt recovery action by LTU, Islamabad.
Source: Paktribune
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