Pakistan may increase federal excise duty on cement


Updated Tue, 07 Jun 2016 15:12:41 GMT

The Pakistani federal government has proposed to increase Federal Excise Duty (FED) on cement by almost 100 percent from the next fiscal year, reports Radio Kapi.

Currently, the domestic cement industry is paying FED in percentage, while as per budget proposals 2016-17, a fixed FED will be charged on cement starting next fiscal year.

“Cement is currently chargeable to FED at the rate of 5 percent of the retail price. Now, the federal government has proposed to replace the current regime with fixed rate basis at the rate of PKR 1 per kg,” said an official.

“This proposal is against the industry’s” demand as we were seeking some relief in taxes to further enhance domestic dispatches, he added. It is believed that proposed change in FED rate will increase the illegal trade, i.e, smuggling of cement into the country,” said Muhammad Ali Tabba, Chairman All Pakistan Cement Manufacturers Association (APCMA).

In case the proposed changes are approved, it will lead to in over 100 percent increase in FED on local sales of cement. In addition, the government is likely to increase custom duty on clinker.