Tractor Prices Surge After New Sales Tax in Pakistan

Jawad

18 Jul 2024

245 Al Ghazi

Tractor Prices Surge After New Sales Tax in Pakistan

Local tractor prices in Pakistan have surged by up to Rs. 323,000 per vehicle, reaching as high as Rs. 3.55 million. This increase follows the federal government's imposition of a 10 percent sales tax on agricultural tractors through the budget for 2024-25.

Impact of Sales Tax

Al-Ghazi Tractors Limited (AGTL) stated that the new 10% sales tax on agricultural tractors has unequivocally impacted tractor prices. Alongside the increased cost of production, AGTL announced revised prices for its tractors, which will be effective immediately.

Revised Prices and Payment Terms

AGTL specified that all orders booked with full upfront payments via various banking instruments before the effective date of the price revision would be honored at the previously applicable prices. This condition applies to payment methods such as pay orders, demand drafts, CDRs, online payments, and cash deposit slips.

S. No	Models	HP	New Base Price before application of 10% General Sales Tax (PKR)	10% General Sales Tax (PKR)	Revised Price after application of 10% General Sales Tax (PKR)	Price Revision Effective Date for each Model
1	NH 480S	55	Rs. 2,154,000	Rs. 215,400	Rs. 2,369,400	5th August 2024
2	NH 480S (Power Plus)	55	Rs. 2,238,000	Rs. 223,800	Rs. 2,461,800	5th August 2024
3	NH Ghazi	65	Rs. 2,490,000	Rs. 249,000	Rs. 2,739,000	29th July 2024
4	NH 640	75	Rs. 3,230,000	Rs. 323,000	Rs. 3,553,000	12 August 2024

Orders Via Banks and Leasing

For orders placed through banks (ZTBL, commercial banks, or leasing), the previously applicable prices will be honored if specific conditions are met. These conditions include issuing demand drafts in favor of AGTL by the concerned bank on or before the delivery dates specified by AGTL and receiving the original demand drafts at AGTL’s distribution department within seven working days of the price revision effective date.

New Bookings Conditions

New bookings through banks will also be honored at the previously applicable prices if supply orders are issued and bookings are made with AGTL before the price revision effective date. The concerned bank must issue demand drafts on or before the dates specified in AGTL's intimation letters, and the original drafts must be received at AGTL’s distribution department within the specified seven working days.

Tractor Prices Sales Tax Impact AGTL Price Revision Agricultural Tractors Budget 202425 Local Tractor Market Tractor Cost Increase Pakistan Tractors AGTL Dealers Tractor Bookings

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