Govt mulling tax to improve capacity utilization in cement sector

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The government is considering incremental taxes to improve capacity utilization in the cement sector, Advisor to Prime Minister on Finance and Revenue Shaukat Tarin said via tweet on Friday.

In his tweet, he said, “incremental taxes are under consideration for those who opted to produce less than their capacity threshold, while no incremental taxes for those who produce above the threshold.”

He further stated that the government is evolving strategy to reduce cement prices and encourage competitive practices within the industry. In this regard, the government will soon move a summary to ECC, he added.

To highlight, the cement sector is under severe pressure amid rising global coal prices, input cost, freight charges and rupee depreciation which have badly affected the cement industry in Pakistan and put considerable pressures on cement manufacturers to pass that inflating costs onto the consumer.

As per the latest data, the average Cement price was recorded at Rs742 per 50 kg bag as of Nov 18, 2021. i.e., 30.23% higher than last year. —TLTP

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