According to local media reports, Pakistan may increase the federal consumption tax on cement by 100 Pakistani rupees per ton in the upcoming budget for the 2014-15 fiscal year.
Officials from Pakistan's Federal Revenue Commission said the Pakistani government had assured local cement producers that it would gradually reduce and eventually abolish the federal excise tax on cement over a period of about three years. It is reported that in the 2011-12 fiscal year, the federal consumption tax on cement in Pakistan was reduced from 750 rupees per ton to 500 rupees per ton, and to 400 rupees per ton in the 2012-13 fiscal year. However, it is reported that the federal excise duty on cement is expected to rise by Rs 100/tonne in the 2014-15 fiscal year, affected by the lack of national tax revenue. This may lead to an increase in the price of bagged cement by 5 rupees. But officials said the decision had not yet been confirmed.
Some analysts believe that due to the ambitious tax plan of the Federal Tax Commission in the 2014-15 fiscal year, the federal consumption tax is more likely to rise. However, some experts predict that Pakistan will increase investment in public sector development plans, which means that domestic demand for cement will increase, so the upcoming budget may have a positive impact on the cement industry.
Editor's note: Pakistan's fiscal year runs from July 1 of the current year to June 30 of the following year.
June 3, 2014:1 PKR = 0.06336 RMB
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