Millat Tractors challenges FTO decision on inadmissible sales tax refunds

February 13, 2023 (MLN): Millat Tractors Limited (MTL), a leading tractor manufacturer in the country will challenge the recent decision of the Federal Tax Ombudsman (FTO) regarding the purported inadmissible sales tax refunds, the company's filing on PSX showed today.

The decision of the FTO was reported in the national press regarding the purported inadmissible Sale Tax refunds to Millat Tractors Limited and has sparked concerns among stakeholders and investors.

According to reports, the FTO declared the sales tax refunds to MTL as inadmissible and stated that the company failed to comply with the rules and regulations set forth by the Pakistan Stock Exchange Limited (PSX) and the Securities Act 2015.

In response, MTL stated that it fully abides by all applicable laws of the country in its dealings and that the sales tax refunds for tractor manufacturers were governed by SRO 363(I) 2012 till 28-04-2022. However, with the issuance of SRO 563(I) /2022 dated 29-04-2022, certain conditions for refunds were incorporated and given retrospective effect.

MTL has already challenged the retrospective applicability of SRO 563 (1)/2022 in the Lahore High Court and Commissioner Appeals, LTU, Lahore. The company has now announced that it will be filing an appeal against the order of FTO with the President of Pakistan.

The outcome of the appeal will be closely watched by investors and stakeholders, and its impact on the business operations of MTL will be closely monitored.

Copyright Mettis Link News