Business

ISLAMABAD: The Pakistan Economy Watch (PEW) has demanded the government to immediately impose a ten per cent duty on import of tractors in order to further enhance the sale of locally manufactured tractors and bring down its prices.

In a statement issued here on Friday, President Pakistan Economy Watch Dr.Murtaza Mughal said the imposition of 10 per cent duty on import of tractors will help at large to boost local tractor industry which may also further decline the prices of tractors.

He said country’s local industry was significantly global competitive that was why duties should be imposed on import of tractors as currently, the import of tractor is zero rated but now government should 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,”Dr.Murtaza Mughal said, 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, 000 subsidy per tractor.

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 16 percent in next four to five years. Reduction in GST had made tractors cheaper by Rs60, 000 to 100,000 per unit.

He said 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.

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