The association called for government intervention, proposing a presumptive tax regime as a possible solution.
ISLAMABAD: Cement dealers across Pakistan initiated a nationwide strike on Monday, protesting indefinitely against the higher withholding tax on cement introduced in the federal budget for 2024-25.
The government raised the withholding tax to 2.5 per cent for non-filers under Section 236H of the Finance Act 2024. This increase, along with new turnover taxes on dealers and retailers, has rendered the cement business unsustainable under current market conditions.
Sajid Chaudhry, Chairman of the All Pakistan Cement Dealers Association, expressed concerns about the negative impact of these taxes and the requirement for Point of Sale (PoS) machines. He argued that many dealers and retailers lack the necessary resources and education to comply with these demands.
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The association called for government intervention, proposing a presumptive tax regime as a possible solution. They warned that if these issues are not addressed, many businesses could be forced to close, leading to higher unemployment and economic challenges.
Additionally, the federal budget for 2024-25 increased the Federal Excise Duty (FED) on cement to Rs 4 per kg, up from Rs 2 in the previous fiscal year.
In contrast, cement exports saw a significant rise of 40.46 percent during the first eleven months of the financial year 2023-24 compared to the same period the previous year. According to the Pakistan Bureau of Statistics (PBS), cement exports were valued at $236.797 million from July to May (2023-24), up from $168.583 million during the same months in 2022-23.
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