Cement manufacturers seek tax relief in federal budget
ISLAMABAD—Cement manufacturers have demanded the government here on Saturday to cut taxes in upcoming Fiscal Year (FY) 2016-17 federal budget and to take steps to eradicate smuggling of the product. Pakistan is self-sufficient in production of cement as over 30 million tone production is recorded annually out of which around 70 lac tone is exported.
Cement Manufacturers Association’s President, Muhammad Ali Tabba while talking to private news channel said, that the government increased duty on coal from one percent to five percent and then to six percent. He said that cement’s production cost for the manufacturers remains unchanged despite revised coal prices due to imposition of different taxes. Cheaper production cost through reduced coal price would have benefitted the buyers but when taxes come in the picture, instead the price goes up.
According to the manufacturers, cheaper in cost cement is smuggled from neighbor country that damages sales in local market. Current price of a cement bag is stagnated at Rs 525 than previous Rs 500, after addition of taxes despite reduced coal price. It should be mentioned here that growth in number of development projects and increased housing schemes are lifting cement sector’s production by 15 percent every year.—APP