Cement dealers say govt inaction could lead to collapse

LAHORE: The All-Pakistan Cement Distributors Association (APCDA) expressed frustration on Tuesday, claiming the government has ignored its strike call issued last Saturday, adding that 11 days had passed with no response from the government.

The association said that this inaction could lead to the collapse of the construction industry and widespread job losses.Addressing a press conference at the Lahore Press Club on Tuesday, Chairperson of the APCDA Chaudhry Sajid, along with other office bearers, urged the government to spare some time for them to listen to their grievances.

The issues of the sector have increased manifold due to heavy taxation levied on the sector in the 2024-25 budget. Industry leaders want the government to collectively reach a solution which should save distributors from cumbersome taxation procedures and generate revenue for the government.

Sajid argued that the recent budget’s heavy taxation, including the increase in the 236-H tax from 1.0 per cent to 2.5 per cent; introduction of point-of-sale (PoS) systems; and the imposition of a turnover tax has made doing business “impossible”.The APCDA claimed that the cement sector should not be classified under fast moving consumer goods (FMCG). It further criticized the FBR’s insistence on PoS systems, adding that a majority of dealers and retailers are not tech-savvy and unable to operate PoS machines.

Sajid said that the number of taxes on cement dealers and retailers was high, which could not be paid through the margin/discount rate they get from cement manufacturing companies so these have had to be passed on to consumers.

He said that cement companies were also not cooperating with distributors or dealers on taxes under the Sales Tax Act Schedule III (maximum retail price) as it had been slapped on dealers and retailers.

He said prices had gone beyond the purchasing power of consumers due to heavy taxations and axle load conditions.APCDA office-bearers said that either cement dealers/retailers should be exempted from the Schedule III of the Sales Tax Act as it does not fall under FMCG or cement dealers and retailers should be included in the presumptive tax regime.

They said they were ready to pay taxes as they had demonstrated in the past, but they should be saved from the cumbersome procedures and complexities of the tax system. They said taxes should be imposed at source to save dealers and retailers from harassment by FBR officials.