ISLAMABAD: Millat Tractors Limited, a prominent tractor manufacturer in Pakistan, has strongly criticized the Federal Board of Revenue (FBR) over a sales tax demand of Rs18 billion, labeling it both “unrealistic and illegal.” The company announced its intentions to challenge the demand through all available appellate forums.
In a notice to the Pakistan Stock Exchange (PSX) on Monday, Millat Tractors clarified that the demand, which pertains to a disclosure made on June 24, 2024, follows an audit by the FBR. The notice came in response to a report by *Business Recorder*, which highlighted that the FBR had raised the hefty tax demand in connection with an order from former President Asif Ali Zardari.
The report further detailed that the FBR had successfully implemented the order, conducted an audit, and issued the Rs18 billion sales tax demand. The Large Taxpayer Office (LTO) in Lahore had also submitted a compliance report to the President of Pakistan, confirming the completion of quasi-judicial proceedings.
Millat Tractors, however, took issue with the FBR’s approach. The company accused the tax authority of relying on “unrealistic and illegal” demands in its effort to meet its tax collection targets, rather than broadening the tax base. It warned that such actions could harm the business environment and discourage investment in the country.
Despite the looming tax demand, Millat Tractors expressed confidence that justice would prevail, asserting that it would pursue every legal avenue to dispute the order.
