Islamabad: In a recent move by the government, the withholding tax on cement has been raised to 2.5% for non-filers, leading to a significant increase in the prices of cement across various brands. The escalation in tax rates has resulted in an increase of PKR 200-250 per bag, impacting both consumers and dealers nationwide.

According to Zameen.Com, the updated tax measures include a heightened sales tax alongside a doubling of the Federal Excise Duty from PKR 2 to PKR 4 per kg. This fiscal adjustment has pushed the cost of A-grade cement to PKR 1500 per bag, with other brands ranging between PKR 1400 and PKR 1470. Notably, brands such as BestWay Cement and Lucky Cement now hover around PKR 1550 to PKR 1600 per bag.

The tax hikes have also prompted a nationwide strike by cement dealers, coordinated by the All Pakistan Cement Dealers Association. The association is pushing for the adoption of a presumptive tax regime to mitigate potential business closures and job losses. Additionally, the new requirement for dealers to install Point of Sale (PoS) machines has posed financial challenges, compounding the industry's distress.