LAHORE – The Cement Dealers Association of Pakistan has announced a countrywide strike to protest against the increase in withholding tax for non-filers and the implementation of turnover tax on dealers, and retailers.
In the fiscal year 2024-25 budget, the federal government has increased withholding tax from 1% to 2.5% for non-filers while turnover tax has also been implemented on dealers/retailers.
Speaking at the Lahore Chamber of Commerce and Industry (LCCI), the Association’s Patron in Chief Chaudhry Muneer has announced not picking up cement from the companies.
“The government has considerably increased tax target. At the same time, opportunities for traders and industrialists have been reduced”, he said, adding that the prevailing scenario would only encourage tax evasion.
Mr Muneer said that the price of a cement bag has reached Rs1500 due to the harsh measures. He said that it has posed a significant negative impact on the overall cement distribution system.
“The impact of new taxes is huge and cannot be met from the rebates and discounts from cement companies. Dealers and retailers are being harassed to install Point of Sales (PoS). But it does not fall in the category of Fast Moving Consumer Goods (FMCG)”, the association office-bearers said, adding that the majority of the dealers and retailers were uneducated and incapable of maintaining records and/or operating on PoS as required by FBR.
He said that dealers/retailers were not in a position to continue their businesses due to such huge taxes and FBR staff harassment on Point of Sales (PoS).
