Millat Tractors recently hit the brakes on its operations for 10 days, only to restart production shortly after. The company cited financial strain and tax headaches. But is this the full story, or just another chapter in a long-running saga of finger-pointing?
When the government rolled out its latest budget, the agricultural sector took a hit. Historically, many of its inputs had enjoyed tax exemptions or zero-rated status. This year, the government shifted gears, slapping a reduced sales tax on these inputs. Tractors, which had long benefited from a zero-tax bracket, suddenly found themselves under the tax hammer.
Within two months, the cracks began to show. The industry was rattled as manufacturers struggled to get their due sales tax refunds from the Federal Board of Revenue (FBR). Millat Tractors, one of Pakistan’s largest tractor manufacturers, was the first to cry foul. With no mechanism in sight for refund disbursements, the company saw no choice but to shut its doors temporarily.
But was this shutdown just about taxes, or is there more to the story? The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
