Any news regarding inflation or price hike is hardly a shocker anymore since we have become habitual of hearing such headlines almost every other day. Today, we bring you yet another disappointing news: the prices of agricultural tractors have been increased by up to Rs.323,000 after the imposition of sales tax by the federal government. Let us discover the details of this news along with the new tractor price in Pakistan.
Why Have The Prices Increased?
Following the fiscal budget 2024-25 announced in June, the government decided to levy a 10% sales tax on agricultural tractors. As a result of the tax imposition, Al-Ghazi Tractors Limited (AGTL) has increased its tractor prices as high as Rs. 3.55 million. Moreover, the cost of production has become higher as well due to the tax obligations. Hence, leading to an overall price hike in Fiat tractors in Pakistan.
You may also like: Salient Features of Pakistan Budget 2024-25: Heavier Tax Burdens Ahead?
Al-Ghazi Tractor Price in Pakistan
As the Fiat tractor prices skyrocket, it would be difficult to buy Al-Ghazi tractors for the farming class. The Al-Ghazi tractor price in Pakistan is given below:
| Tractor Models | HP | Old Price (Before Tax Imposition) | 10% General Sales Tax (PKR) | New Price (After Tax Imposition) | Price Revision Date (2024) |
| NH 480S | 55 | Rs. 2,154,000 | Rs. 215,400 | Rs. 2,369,400 | 5th August |
| NH 480S (Power Plus) | 55 | Rs. 2,238,000 | Rs. 223,800 | Rs. 2,461,800 | 5th August |
| NH Ghazi | 65 | Rs. 2,490,000 | Rs. 249,000 | Rs. 2,739,000 | 29th July |
| NH 640 | 75 | Rs. 3,230,000 | Rs. 323,000 | Rs. 3,553,000 | 12th August |
The price data has been sourced from multiple news outlets showing different figures, hence the prices may vary.
Note: Massey Ferguson/Millat tractors have not announced any price hike yet. Stay tuned for more related updates!
Price Protection Terms for Orders and Bookings
Hold on! Good news awaits you if you’ve paid the full amount upfront through methods like pay orders, demand drafts, online banking, or cash before the price change date. In such a case, your order will be processed at the old prices. Additionally, pending bookings with supply orders issued via banks like ZTBL or commercial banks, will retain old prices if the bank issues demand drafts to AGTL before specified delivery dates.
Lastly, for the new bookings via banks to qualify, Al-Ghazi must confirm supply orders before the price change. In either case, the drafts should follow AGTL’s instructions and reach D.G. Khan within 7 working days of the price revision.
Conclusion
In conclusion, Al-Ghazi tractor prices have hit a new high of Rs. 3.55 million which is concerning for farmers in Pakistan. The price rise followed by the application of sales tax could make essential farming equipment less accessible, affecting farm productivity and incomes. For thriving agriculture in Pakistan, the government should ease up on the taxes, especially on the labor class.
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