Cement dealers have declared a nationwide strike starting today due to higher withholding tax on cement in federal budget 2024-25.
The government has increased the withholding tax to 2.5 percent for non-filers under Section 236H of the Finance Act 2024 which has made the cement business unsustainable given the current market conditions besides the new turnover taxes imposed on dealers and retailers.
Chairman Sajid Chaudhry highlighted concerns that these measures have inflated cement prices to Rs. 1,500 per bag and hurt the distribution system. He criticized the requirement for Point of Sale machines, arguing that such demands are impractical for many dealers and retailers, who lack the necessary resources and education.
The association urged the government to intervene, suggesting a presumptive tax regime as a solution. They warned that failure to address these issues could force many businesses to shut down, worsen unemployment, and hurt the economy.
The federal government in budget 2024-25 has also imposed a higher FED on cement to Rs. 4 per kg compared to Rs. 2 in the previous fiscal year.
The original budget first proposed an increase to Rs. 3 per kg but Finance Minister Muhammad Aurangzeb on Friday announced a doubled rate i.e. Rs. 4 per kg for the new fiscal year.
Cement bag was for Rs 1250 before budget ,after 2.5% tax how can it be Rs.1500 instead of Rs 1280.
Cement mafia is another mafia.
2.5% on each KG