ByMillat Tractors Limited, one of Pakistan’s leading tractor manufacturers, has strongly criticized the Federal Board of Revenue (FBR) over an Rs18 billion sales tax demand, terming it “unrealistic and illegal.” The company made its stance clear in a notice to the Pakistan Stock Exchange (PSX) on Monday, affirming its intention to challenge the order through all available appellate forums.
The notice referred to a news report in Business Recorder regarding the FBR’s demand, which is related to a disclosure previously made by Millat Tractors on June 24, 2024. The report highlighted that the FBR issued the hefty tax demand following an audit conducted in compliance with an order from President Asif Ali Zardari.
According to Business Recorder, the FBR swiftly implemented the President’s directive and completed an audit of the Lahore-based company, resulting in the significant sales tax demand. The tax authority has reportedly confirmed to the President that quasi-judicial adjudication proceedings have been finalized against Millat Tractors. Furthermore, the Large Taxpayer Office (LTO) in Lahore submitted an implementation report to the President on January 25, 2025, through the Federal Tax Ombudsman (FTO).
President Zardari has since instructed the FTO to submit a final compliance report, along with explanations addressing his queries related to the audit case.
In response, Millat Tractors rebuked the FBR’s actions, accusing the federal tax authority of targeting existing taxpayers instead of broadening the tax base. The company warned that such measures, driven by the FBR’s ambition to meet “unrealistic tax targets,” would negatively impact businesses and harm the overall investment climate in Pakistan.
Millat Tractors reiterated its resolve to contest the FBR’s order through all legal avenues and expressed confidence that justice would ultimately prevail.
