LAHORE: Cement manufacturers have demanded the government cut taxes in upcoming budget 2016-17 to eradicate smuggling of the product. Pakistan is self-sufficient in cement production as over 30 million ton production is recorded annually out of which around 700,000 ton is exported.
Cement Manufacturers Association’s President, Muhammad Ali Tabba said while talking to media persons. He said that the government has increased duty on coal from one percent to five percent and then to six percent.
He said that cement’s production cost for the manufacturers remains unchanged despite revised coal prices due to imposition of different taxes. Cheaper production cost through reduced coal price would have benefitted the buyers but when taxes come in the picture, instead the price goes up.
According to the manufacturers, cheaper in cost cement is smuggled from neighbour country that damages sales in local market. Current price of a cement bag is stagnated at Rs 525 than previous Rs 500, after addition of taxes despite reduced coal price.
It is necessary to mention here that growth in number of development projects and increased housing schemes are lifting cement sector’s production by 15 percent every year.
