Cement dealers go on countrywide strike against taxes
- By Web Desk -
- Jul 15, 2024
Cement dealers in Pakistan begin their countrywide strike for an indefinite period against higher withholding tax on cement in the federal budget 2024-25, ARY News reported on Monday.
The government has increased the withholding tax to 2.5 percent for non-filers under Section 236H of the Finance Act 2024 which has made the cement business unsustainable given the current market conditions besides the new turnover taxes imposed on dealers and retailers.
All Pakistan Cement Dealers Chairman Sajid Chaudhry highlighted concerns that taxes and PoS measures have badly distributed their business. He criticized the requirement for Point of Sale machines, arguing that such demands are impractical for many dealers and retailers, who lack the necessary resources and education.
The association urged the government to intervene, suggesting a presumptive tax regime as a solution. They warned that failure to address these issues could force many businesses to shut down, worsen unemployment, and hurt the economy.
Read more: Pakistan’s cement exports increase by 40.4 percent
The federal government in budget 2024-25 has also imposed a higher FED on cement to Rs4 per kg compared to Rs2 in the previous fiscal year.
Meanwhile, the exports of cement witnessed an increase of 40.46 percent during the first eleven months of the financial year 2023-24, as against the exports of the corresponding months of last year.
The cement exports from the country were recorded at US $236.797 million during July-May (2023-24) against US $168.583 million during July-May (2022-23), according to the Pakistan Bureau of Statistics (PBS).