August 12, 2024 (MLN): In response to a media report claiming that vendors have stopped supplying tractor parts to assemblers, Millat Tractors Limited (PSX: MTL) clarified through a notice issued to the local bourse today that it remains operational.
To clarify further, MTL informed that the GST on tractor is 10% and the GST on all input raw materials is 18% resulting in a continuous stream of refunds. However, Federal Board of Revenue (FBR) has not issued any mechanism for payment of refund claims yet.
MTL has already sought clarification from the FBR in this regard, it stated.
Currently, MTL is continuing its operations; however, sales and bookings are limited and are only being made to agri-loan customers.
As a result, CBU inventory is piling up, and working capital is being squeezed. If this issue persists and the FBR delays the clarification, MTL may have to consider a shutdown.
Earlier, Al-Ghazi Tractors Limited (PSX: AGTL), a member of the same industry officially denied claims of disruptions in the supply of tractor parts, clarifying that the news report highlighted this was not based on factual information.
Contrary to the news item published on August 9, 2024, AGTL also confirmed that its operations are running smoothly, with no interruptions in the supply chain due to delayed payments.
