LAHORE - Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM) Central Vice Chairman Nabeel Hashmi has asked the federal government to remove the confusion on the issue of GST on tractors, as the sale of the tractors has almost been halted in the hope that govt would withdraw the tax. He said that the government, on the pressure of the powerful textiles industry, withdrew the decision of GST imposition on their products within days of its announcement, where as the tractor sector has been left in the back burner for over two months now. PAAPAM therefore once again demand early clarity of the position on GST on tractors for smooth rolling of the tractor industry wheel because any further delay will make its revival impossible, he stated. The central vice chairman hailed the adjournment motion on the closure of tractor industry due to GST imposition, which was moved by Raja Mohammad Asad Khan and four other MNAs in the 34th session of the national assembly. He lauded the parliamentarians, who raised the tractor industry closure issue at the highest national level. He told TheNation that only 800 tractors were produced against capacity of 7,000, as the Al-Ghazi Tractors Limited (AGTL) was totally closed while the MTL is working four days a week, primarily due to the effect of GST which has raised the price of the 50 Hp tractors by Rs100,000 and the 85Hp tractor by over Rs200,000. The second reason of huge drop in tractor sale is the lack of clarity and delay on the part of the government in amending the current 16 per cent GST regime. Farmers are holding back there purchases in the hope that government would provide relief by abolishing or reducing the GST, he added. He said that the halt in agri loans by ADBP is also one of the reasons of downfall in tractors sale. If decisions are not forth coming soon, he fears, it will be the end game for 300 odd vendors. This little known industry employs 30,000 people directly and an estimated investment of Rs 20 billion is looking towards the government to give it a new lease of life so that the tractor assembly lines start moving again, he observed. He said that in India across the board 4-5 per cent GST is levied on tractors. Last year 80,000 tractors were produced in the country and government collected in the withholding tax head alone Rs14,00020,000 per tractor which amounts to over Rs1 billion in revenue.