ISLAMABAD: The Cement industry has vehemently advocated for the exclusion of cement from the third schedule Sales Tax Act which has increased price of the commodity ‘unnecessarily.’
According to the All Pakistan Cement Manufacturers Association (APCMA), the government can provide the needed respite to both the industry and consumers by considering budget proposals put forwards by the stakeholders.
The association is of the view that that the government initiative will bail the industry out of the current dilemma as to whether or not overcharge the consumers located near to cement plants or incurred loss by supplying cement to far-off areas at the same cost. It will also bring cement prices hence increasing consumption and the government revenues eventually.
The association pointed out that it was in the larger interest to revive the old practice of selling cement through the wholesale mechanism and sales tax collection on ex-factory prices for different market areas as dynamics of every province and region was different across the country. It elaborated that the collection of sales tax on the basis of single MRP across the country was anomalous, which will ultimately force the manufacturers to restrict the sales only to nearby markets.
It is to be noted that the cement industry has suggested that the cement manufacturers may be allowed to charge transportation as per hard-to-reach and easy-to-reach areas, keeping in view the vicinity of the production units.
