Cement dealers across Pakistan have commenced an indefinite strike in protest against the higher withholding tax introduced in the federal budget for 2024-25, as reported by InShortnews News on Monday.
The government has raised the withholding tax to 2.5 percent for non-filers under Section 236H of the Finance Act 2024. This increase, along with new turnover taxes, has rendered the cement business unsustainable in the current market conditions.
Sajid Chaudhry, Chairman of the All Pakistan Cement Dealers Association, expressed concerns that the new taxes and Point of Sale (PoS) requirements have severely disrupted their business operations. He argued that many dealers and retailers lack the resources and education needed to comply with PoS demands.
The association has called on the government to consider a presumptive tax regime as a potential solution. They warned that if these issues are not addressed, numerous businesses could be forced to close, leading to increased unemployment and economic harm.
In the federal budget for 2024-25, the government has also raised the Federal Excise Duty (FED) on cement to Rs4 per kg, up from Rs2 in the previous fiscal year.
Meanwhile, cement exports have seen a significant increase of 40.46 percent during the first eleven months of the financial year 2023-24 compared to the same period last year. According to the Pakistan Bureau of Statistics (PBS), cement exports were recorded at $236.797 million from July to May (2023-24), up from $168.583 million during the same months in 2022-23.