Sonalika International Tractors of India has opposed the 28% levy on tractor parts proposed under the Goods and Services Tax (GST) structure, saying it will hurt the sector and also farmers. Source: Deccan Chronicle
The tractor manufacturer said the tax on tractor parts should remain at the
existing level of 14%.
“The government has proposed to raise GST on tractor and car parts to 28% while at present it is 14%. This will result in an increase in cost of tractors and would adversely impact farmers in a major way,” Sonalika International Tractors Vice-President (Sales and Marketing) Munish Kumar said.
“We, along with other tractor companies, are discussing the matter with the government and have demanded that GST remain at 14% in the interest of farmers,” Mr Kumar said.
Rise in GST on tractor parts will also affect companies, he said.
However, Mr Kumar did not specify the expected increase in price of tractors post-GST (at 28% levy).
The Centre is targeting a July 1 roll-out for the unified tax system.
Mr Kumar said in the fiscal 2016-17, the company sold 8507 tractors, registering a growth of 22.6% over FY 2015-16, when the figure stood at 6841 units.
In April, the company sold 932 tractors while the figure was 683 in the same month last year, he said.
Buoyed by sales in Madhya Pradesh, the company is planning to introduce more new products in the state to maintain its leading position, he added.