Pakistan tractor industry facing the risk of complete closure due to FBR’s negligence
It is pertinent to mention that last month, the PAAPAM accused the FBR and its subordinate entities of creating hurdles for the tractor industry.
Recent reports unveil that the Pakistan tractor industry is facing the risk of complete closure. According to details, the reason behind the closure is the delay by the Federal Board of Revenue in refunding the sales tax of Rs. 6 billion.
The reason behind the Closure
The Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM) issued a statement yesterday which stated:
A long delay by the Federal Board of Revenue (FBR) has caused the tractor industry to halt its operations. Tractor manufacturers have also stopped ordering parts from vendors in anticipation of the closure.
The PAAPAM further shared:
The news of the possible closure has left the industry in chaos, and more than 250 parts manufacturers have been forced to shut down operations. This will leave two million people directly and indirectly employed in the sector, without another means of earning.
FBR delaying funds intentionally?
It is pertinent to mention that last month, the PAAPAM accused the FBR and its subordinate entities of creating hurdles for the tractor industry. The industry officials claimed that the FBR was delaying the clearing of the sales tax refund intentionally.
The FBR Chief Operations Refund Officer, Muhammad Abu Bakar Siddique, told the PAAPAM that the FBR has no reason to stop or delay the sales tax refund. He suggested:
The PAAPAM should contact the Large Taxpayers Unit (LTU) Lahore Chief Commissioner, Qesar Iqbal.
Following their claims, the PAAPAM lodged a complaint with the Federal Minister of Industries and Production, Khusro Bakhtiar, and the Secretary Industries and Production, Dr. Hamid Ateeq Sarwar. The authority figures assured the tractor industry officials that the funds – which have now been delayed for more than 18 months – would be released immediately.
However, much to the PAAPAM’s disappointment, there has been no development in the matter. Authorities are silent as the tractor industry is nearing a complete shutdown.
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