Cement retailers initiated a nationwide strike in protest against taxation.

Under Section 236H of the Finance Act 2024, the government has raised the withholding tax to 2.5 percent for individuals who do not submit taxes. This, along with the newly imposed turnover taxes on dealers and retailers, has rendered the cement company unviable in light of the current market conditions.

Sajid Chaudhry, Chairman of the All Pakistan Cement Dealers, expressed concerns about the negative impact of taxes and Point of Sale (PoS) procedures on their business distribution. He expressed disapproval of the necessity for Point of Sale equipment, contending that such requirements are unfeasible for several dealers and merchants due to their limited resources and lack of education.

The association implored the government to intervene, proposing the implementation of a presumptive tax regime as a viable alternative. They cautioned that if these challenges are not addressed, it could compel numerous enterprises to close, exacerbate unemployment, and harm the economy.

Pakistan’s cement exports have experienced a significant surge of 40.4 percent.

In the budget for the fiscal year 2024-25, the federal government has increased the Federal Excise Duty (FED) on cement to Rs4 per kg, up from Rs2 in the previous fiscal year.

During the first eleven months of the financial year 2023-24, cement exports had a significant growth of 40.46 percent compared to the same period previous year.

According to the Pakistan Bureau of Statistics (PBS), the country’s cement exports amounted to US $236.797 million from July to May (2023-24), compared to US $168.583 million during the same period in the previous year (2022-23).