Cement may cost Rs 35/bag more in FY2016-17
The current duty tax on a bag of cement is Rs 21
LAHORE (Dunya News) – Cement bags are likely to cost Rs 35 more each as odds are that the government will hike federal excise duty on the sector in the financial year 2016-17, reported Tuesday.
According to the manufacturers, the government is mulling increasing excise duty in the upcoming federal budget.
The current duty tax on a bag of cement is Rs 21. Analysts have warned that the growth of construction sector will be affected if the cost goes up.
They further said that movement of smuggled product will increase in the country as well.
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.
Association had stated earlier this month that 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.
The association called for relief in taxes in the fiscal year 2016-17.
