KARACHI: With the reduction in General Sales Tax (GST) back to 10% in budget 2015, tractor industry sales are expected to rebound over the next year.
AKD Securities, a brokerage house, predicted that the sales of Millat tractors in fiscal year 2015 might touch 32,000 units while the Al-Ghazi tractors sales may reach 25,000 in 2015.
The government had reduced GST on tractors from 16% to 10% in the federal budget.
Considering the tractor industry recorded sales of just 31,060 units in the first 11 months of fiscal year 2014 (down from highest-ever 71,512 units sales in fiscal year 2010), this GST reduction is expected to provide a significant boost to tractor sales.
With 71,512 units sold in fiscal year 2010, overall tractor sales plummeted to 49,745 units in FY12 and 31,060 units (MTL: 20,060 units; AGTL: 11,000 units) in 11MFY14 – tractor sales are set to post their worst record in the last seven years.
This dip in tractor sales can partly be attributed to a volatile taxation regime over the last five years.
