Millat tractors halts production due to GST refund delays
Tractor manufacturer cites government inaction on refund mechanisms as reason for stoppage.
Millat Tractors Limited (MTL) has announced the suspension of its production operations due to unresolved issues surrounding the Goods and Services Tax (GST) refunds.
The company disclosed this development in a notice sent to the Pakistan Stock Exchange on Thursday.
According to the notice, MTL highlighted that while the GST on tractors is set at 10%, the GST on input raw materials is 18%. This discrepancy has led to a continuous accumulation of refund claims.
However, despite the company’s efforts to seek clarification, the government has yet to establish a mechanism for processing these refunds.
As a result, Millat Tractors stated that it is "constrained to stop production till further notice."
The company has requested that the Pakistan Stock Exchange inform the TRE Certificate Holders of this material information.
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