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Tractor Prices up by Rs 323000 Due to New Taxes

Tractor Prices up by Rs 323000 Due to New Taxes

Surge in Tractor Prices in Pakistan Following New Sales Tax

Local tractor prices in Pakistan have experienced a significant surge, with increases of up to Rs. 323,000 per vehicle, now ranging as high as Rs. 3.55 million.

Read More: Petrol Price Increased 

This spike comes after the federal government implemented a 10% sales tax on agricultural tractors as part of the 2024-25 budget.

Impact of the 10% Sales Tax on Tractor Prices

“The federal government had proposed the imposition of a 10% sales tax on agricultural tractors in the budget 2024-2025, which has since been implemented.

Following the 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 (AGTL) stated in a notice to all dealers on Monday.

Revised Tractor Prices by AGTL

AGTL has outlined the revised prices of its tractor models, reflecting the tax implications and the effective dates of each price revision. Below is a detailed breakdown:

S. NoModelsHPNew Base Price (PKR)10% GST (PKR)Revised Price (PKR)Effective Date
1NH 480S55Rs. 2,154,000Rs. 215,400Rs. 2,369,4005th August 2024
2NH 480S (Power Plus)55Rs. 2,238,000Rs. 223,800Rs. 2,461,8005th August 2024
3NH Ghazi65Rs. 2,490,000Rs. 249,000Rs. 2,739,00029th July 2024
4NH 64075Rs. 3,230,000Rs. 323,000Rs. 3,553,00012th August 2024

Conditions for Orders at Previous Prices

Cash Orders

For orders booked with 100% payment made upfront through payment instruments (pay orders, demand drafts, CDR, online payments, cash deposit slips) before the effective date for the relevant model, AGTL will consider these orders at the previously applicable prices.

Orders Via Banks (ZTBL/Commercial Banks/Leasing)

Pending bookings for which supply orders have been issued will be considered at the previous prices if the following conditions are met:

  • Demand drafts are issued in favor of AGTL by the concerned bank on or before the delivery dates specified by AGTL in the already issued intimation letters.
  • The original demand drafts are received at AGTL’s distribution department in D.G Khan, Punjab, within 7 working days of the price revision effective date for the relevant model.

New bookings through banks will be considered at previous prices if:

  • Supply orders are issued by the bank and booking is made with AGTL before the price revision effective date.
  • Demand drafts are issued in favor of AGTL by the concerned bank on or before the dates specified in intimation letters to be issued by AGTL for such orders.
  • The original demand drafts are received at AGTL’s distribution department in D.G Khan, Punjab, within 7 working days of the price revision effective date.

Conclusion

The implementation of the 10% sales tax on agricultural tractors by the federal government has led to a significant increase in tractor prices in Pakistan. Al-Ghazi Tractors Limited has adjusted its prices accordingly, providing clear guidelines for orders to be honored at previous rates under specific conditions. This move is expected to impact the agricultural sector significantly, as farmers will need to navigate these new costs while planning their equipment purchases.

For more information, please visit the official website of Al-Ghazi Tractors Limited.

By understanding the detailed changes and conditions set by AGTL, farmers and dealers can better manage their tractor purchases amid the new tax regime, ensuring they make informed decisions that align with their financial planning.

Note: The information above might not be accepted 100%. Please verify from your own sources. We will not be responsible for any kind of loss due to our content.

For more news, please visit Munafa Marketing.

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