Summary Current price of a cement bag is stagnated at Rs 525 than previous Rs 500
LAHORE (Dunya News) – Cement manufacturers have demanded the government on Saturday to cut taxes in 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 tonne production is recorded annually out of which around 70 lac tonne is exported.
Reduced prices of coal, that serves as raw material for cement production, in international markets could have resulted in lessened production cost eventually relieving the buyers but taxes imposed by the government do not let that happen.
Cement Manufacturers Association’s President, Muhammad Ali Tabba 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.
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Organisation’s president talks with Dunya News
Association’s chief further said that the government revised gas tariff as well which further caused cessation to any relief if there was any.
Cheaper production cost through reduced coal price would have benefited 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 Iran 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.
