ISLAMABAD, JULY14: Cement dealers have called a statewide strike starting today due to increasing withholding tax on cement in federal budget 2024-25.
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 company unsustainable given the current market conditions besides the new turnover taxes imposed on dealers and retailers.
Chairman Sajid Chaudhry expressed alarm over worries that these actions have damaged the distribution network and driven up cement prices to Rs. 1,500 a bag. He argued that many dealers and merchants lack the resources and training required to meet such expectations, making the requirement for Point of Sale equipment unfeasible.
The group recommended a presumptive tax structure as a remedy and urged the government to step in. They issued a warning that if these problems are not resolved, the economy may suffer, unemployment may increase, and many enterprises may be forced to close.
A higher FED of Rs. 4 per kg has been placed on cement by the federal government in the budget for 2024–25, up from Rs. 2 in the previous fiscal year.In the current fiscal year, Finance Minister Muhammad Aurangzeb declared a doubling rate of Rs. 4 per kg, instead of the initial budget’s anticipated increase to Rs. 3 per kg.
