ISLAMABAD: Cement dealers across Pakistan have commenced an indefinite nationwide strike starting Monday, in protest against the increase in withholding tax for non-filers to 2.5 percent under Section 236H of the Finance Act 2024, and additional turnover taxes introduced in the federal budget for 2024-25.
Chairman of the All Pakistan Cement Dealers, Sajid Chaudhry, expressed significant concerns over these tax measures and the implementation of Point of Sale (PoS) systems, which he argued are not feasible for many dealers and retailers due to a lack of resources and training.
The association has called on the government to consider adopting a presumptive tax regime to alleviate these challenges.
They have warned that without government intervention, the new tax policies could lead to widespread business closures, increased unemployment, and detrimental effects on the economy.
Furthermore, despite the internal challenges, the cement industry has seen a substantial increase in exports. According to the Pakistan Bureau of Statistics (PBS), cement exports surged by 40.46 percent during the first eleven months of the financial year 2023-24, amounting to $236.797 million, up from $168.583 million in the corresponding period the previous year. This growth comes even as the industry faces increased federal excise duty (FED) on cement, which has risen from Rs2 to Rs4 per kilogram in the new fiscal year.
