Cabinet committee cuts GST on tractors

The committee constituted by the Cabinet, Friday, decided to reduce the GST on tractor industry from 16% to 5% so that the prices of tractors may be brought within the purchasing range of small land holders.The Cabinet Committee met with Senior Federal Minister for Industries and Defence Production Chaudhry Pervaiz Elahi in the chair while Mian Manzoor Ahmad Wattoo, Minister for Kashmir Affairs and Gilgit Baltistan, Syed Khursheed Shah Minister for Religious Affairs, Aziz Ahmad Bilour Secretary Industries, Salman Siddique Chairman FBR, representatives of Zarai Taraqiati Bank Limited (ZTBL), tractor and Pakistan Association of Automotive Parts and Accessories Manufacturers were also present in the meeting.Address the meeting, Chaudhry Pervaiz Elahi said that reduction in the rate of GST on tractors is a win-win situation for all the stake-holders and will help the low-income farmers to follow modern ways of farming.He was of the view that mechanization of agriculture is the need of the hour and low-priced farm machinery will attract more and more farmers to upgrade their old and inefficient farming techniques. It must be noted here that the representatives of tractor and its vendor industry met Ch. Pervaiz Elahi in Lahore yesterday to intervene in the matter and the minister promised to resolve their issues to their satisfaction.Senior Minister also directed the representatives of ZTBL to resume bank leasing of the tractors on easy installments to farmers to which they agreed. The meeting was informed that suspension of bank leasing on tractors was also one of the reasons of drop in sales of tractors.Chaudhry Pervaiz Elahi said that this decrease in GST will cut the prices of tractors by 60,000 to 90,000 which will boost the sales of tractors and revenues of the Government. He said that the economy of Pakistan banks heavily on the agricultural produce of the country therefore every step will taken to modernize and mechanize agriculture in the country.