Millat Tractors suspends production in Pakistan: Here’s why
MTL reiterated that the current production stoppage is solely due to ongoing issues with GST refunds and is not related to disruptions in the supply chain.
ISLAMABAD: Millat Tractors Limited (MTL), a prominent manufacturer in Pakistan’s agriculture sector, has temporarily suspended its production operations due to unresolved issues related to GST refunds, the company said today. According to a filing made to the Pakistan Stock Exchange (PSX).
As per the details, the company revealed that while GST on tractors is fixed at 10 percent, GST on raw materials required for production is 18 percent, creating a backlog of refund claims. Despite repeated requests for clarification, the government has yet to establish a mechanism to process these refunds.
As a result of these ongoing challenges, MTL has decided to suspend production until further notice.
Last week, MTL addressed rumors of disruptions in its supply chain.
A media report published on August 9 stated that the company’s vendors have stopped supplying tractor parts due to operational difficulties.
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However, MTL categorically denied these claims in a statement to the PSX on August 12. The company clarified that no vendor has stopped operations and assured stakeholders that it will immediately inform the stock exchange if any such issue arises.
MTL reiterated that the current production stoppage is solely due to ongoing issues with GST refunds and is not related to disruptions in the supply chain.
