Karachi, December 31, 2012 (PPI-OT): Millat Tractors and Al-Ghazi Tractors have raised tractor prices by around 5% as input cost has surged and the general sales tax (GST) would be increased to 10% in the New Year from the current low rate of 5%.
According to Alfalah Securities Limited, the GST had been lowered to 5% from 16% in order to support Tractors industry and the agriculture sector. Millat Tractor has increased the price of MF-240 by PKR 30,500 to PKR 640,000 with effect from December 12, 2012 and MF-260 prices have been increased by PKR 33,500 to PKR 703,000 while MF-385 has been made costlier by PKR 73,000 to PKR 1,533,000. Likewise, Al-Ghazi Tractor has also increased the tractor prices by up to PKR 73,000. The increase in tractor prices would improve the margins of these companies however; the unit sales of tractors might drop due to increase in prices.