Millat Tractors Stops Production Over GST Refunds Issue

Millat Tractors Limited (PSX: MTL) Thursday said it has been forced to stop production till further notice. In a notice to Pakistan Stock Exchange (PSX), the company said that GST on tractor is 10 percent and the GST on all input raw materials is 18 percent resulting into a continuous stream of refunds. It said that the government has not issued any mechanism for payment of refund claims yet, despite MTL seeking clarification. “Resultantly MTL is now constrained to stop production till further notice,” it said further. MTL is principally engaged in assembling and manufacturing of agricultural tractors, implements and multiapplication products. The company is also involved in the sale, implementation and support of IFS applications in Pakistan and abroad.