Cement Dealers Announce Strike Against New Taxes

Following the lead of petroleum dealers and flour millers, the Cement Dealers Association of Pakistan has declared an immediate strike in response to the government’s recent tax hikes.

The Finance Act 2024, which raised the withholding tax under Section 236H from 1% to 2.5% for non-filers and introduced a turnover tax on dealers and retailers, has sparked widespread discontent among cement dealers.

Chaudhry Muneer, Patron-in-Chief of the Association, announced the strike at the Lahore Chamber on Saturday, stating, “No cement dealer will pick up cement from the companies from today.” This bold move is expected to disrupt the supply chain and impact construction projects nationwide.

Sajid Chaudhry, another prominent figure in the association, expressed concerns over the increased tax target, highlighting that business opportunities for traders and industrialists are dwindling. He warned that the higher taxes could lead to more tax evasion. “A bag of cement now costs Rs1500 due to the stringent measures introduced in the budget,” he explained, noting the significant negative impact on the overall cement distribution system.

The association pointed out that many dealers and retailers, who are often uneducated and incapable of maintaining detailed records or operating Points of Sale as required by the Federal Board of Revenue (FBR), are struggling under the new regulations. Chaudhry stressed that the heavy taxes and harassment by FBR staff related to the installation of Points of Sale are forcing dealers to consider shutting down their businesses.

“The cement industry is the backbone of the national economy,” Chaudhry emphasized, “and its dealers and retailers play a crucial role in the distribution of cement across the country.” The strike highlights the urgent need for the government to reconsider its tax policies and address the concerns of the dealers to ensure the stability of the cement industry and the broader economy.

Impact of the Strike on the Construction Industry

The strike by cement dealers is likely to cause significant delays in construction projects, both public and private, across Pakistan. Contractors and builders have already raised concerns about the potential increase in project costs and timelines due to the disrupted supply of cement.

Government’s Response

As of now, the government has not issued an official response to the strike. However, analysts predict that prolonged disruption in the cement supply chain could compel the authorities to engage in negotiations with the Cement Dealers Association to find a mutually agreeable solution.

For more updates on the cement dealers’ strike and its impact on the construction industry, stay tuned to our news portal.