Cement-makers oppose tax measures

Fear these will push up cost of doing business

LAHORE: The manufacturers of cement have voiced their opposition to the various tax measures announced in the federal budget for 2015-16 that they say will hurt investor sentiments in general and burden cement consumers in particular.

“Finance Minister Ishaq Dar should revisit some fiscal measures that will lead to an increase in the cost of doing business and are against the norms of taxation,” said Muhammad Ali Tabba, Chairman of All Pakistan Cement Manufacturers Association.

In a statement, Tabba pointed out that taxpayers having taxable income of Rs500 million or more would be liable to pay 3% super tax, which was discriminatory. The super tax would also be charged on export income, though exports were subject to the final tax regime at the rate of 1%, he said.



Protesting against the increase in import duty from 1% to 5% on coal, Tabba said while the cement manufacturers were making efforts to reduce the cost of production in order to compete at the global level, the duty hike would increase the business cost.

“Fuel constitutes more than 50% in the overall production cost and cement manufacturers will have no choice but to pass this additional burden on to consumers,” he added.

Published in The Express Tribune, July 25^th, 2015.

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