The Federal Board of Revenue (FBR) has announced a 4% increase in sales tax on tractors.

The FBR’s notification states that the sales tax on locally manufactured tractors will rise from 10% to 14%, with the same increase applied to imported tractors.

Officials from the FBR noted that some sales tax exemptions for tractors have been reduced.

Although the tax rate has decreased from 18% to 14%, they clarified that this change should not lead to higher prices for tractors.

They also mentioned that the reduction in the tax rate will make the sales tax refund process easier.

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However, the Sindh Chamber of Agriculture has expressed disagreement, warning that the 4% increase will likely make tractors approximately Rs80,000 more expensive, adding financial pressure on farmers seeking to buy tractors.