Local tractor prices have surged up to Rs. 323,000 per vehicle to as high as Rs. 3.55 million in Pakistan after the federal government through budget 2024-25 imposed a 10 percent sales tax on agricultural tractors.
“The federal government had proposed imposition of 10% sales tax on agricultural tractors in the budget 2024- 2025, which has since been implemented. Following implementation of this new tax regime, there is an unequivocal impact on the prices of our tractors. Moreover, the cost of production has also increased, due to which AGTL is revising the prices of its tractors,” Al-Ghazi Tractors Limited said in a notice to all dealers on Monday.
The revised model-wise prices of AGTL tractors along with tax implication and effective date of each price revision is as follows:
For all orders that are booked with 100 percent payment made upfront through payment instruments i.e., pay orders/demand drafts/CDR//online payments through banking channels/cash deposit slips before the price revision effective date for the relevant model (as specified in the table above), such orders shall be considered by AGTL at the previously applicable prices.
Pending bookings for which supply orders have been issued, shall be considered at the previously applicable prices, if the following conditions are met:
All new bookings through banks shall be considered at the previously applicable prices if the following conditions are met:
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Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
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Jurisdiction: Pakistan