Business

The tractor parts industry is worried that they might sell fewer items

Join Our WhatsApp Channel for Update: Join Now

The tractor parts industry is preparing for a drop in sales, similar to last year (2022-23), when sales were low because of the country’s weak economy.

Tractor sales this year might reach 40,000 units, thanks to the government’s low-interest loan scheme. However, the sales of parts are still 50% lower than the country’s capacity to produce tractors, according to Abdul Rehman Aizaz, Chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam).

He mentioned that the Punjab government usually buys a lot of wheat at a fixed support price. But this year, due to limited funds and lack of storage space after heavy wheat imports from Ukraine, it couldn’t do so.

“This has made farmers sell their surplus wheat at lower prices,” he said. He added that this decrease in farmers’ income would directly affect the tractor parts industry, which mainly relies on local production to make tractors affordable.

He also expressed concern that changes in the general sales tax (GST) and natural disasters like floods have hurt the vendor industry. Additionally, the removal of subsidies has had a negative impact.

Rumors about imposing GST on tractor sales have worried farmers and the tractor and parts industries. Aizaz cautioned that if these rumors are true, they will definitely affect tractor sales next year.

In the past, subsidies from both federal and provincial governments and the zero-rated GST regime boosted tractor sales to over 70,000 units per year.

However, these subsidies and GST rules change frequently, causing ups and downs in the tractor and parts industry. Mumshad Ali, Paapam’s Senior Vice Chairman, said these policy changes need to stop.

Association leaders stressed the importance of the farming sector, which affects the tractor and vendor industries and the livelihoods of many families. They urged authorities not to impose sales tax on tractors.

They also suggested continuing the tractor loan scheme in the next budget for fiscal year 2024-25 because a successful farming community is crucial for national prosperity.

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Most visited places in Hawaii Most visited places in Scotland Top 10 best places to visit in Iceland Top 10 best hotels in UK Best places to visit in UK
Celebrate Canada Day 2024 03 birds with striking green feather Apple retires many iPhones 18 Best Things to Do in Zion National Park 10 Best Things to Do in Acadia National Park USA