Cement Prices Surge in Pakistan After New Taxation Strike

Construction in Pakistan has become more expensive as manufacturers have raised the price of cement bags due to new taxes. Alongside increased transport costs for raw materials, the government has introduced sales and withholding taxes, driving up the cost of a cement bag by Rs. 200-250.

As of July 30, A-grade cement is priced at Rs. 1,500 per bag, while other brands range from Rs. 1,400 to Rs. 1,470.

Cement Price in Pakistan

Cement dealers in Pakistan have launched an indefinite nationwide strike in response to higher taxes and regulatory requirements introduced in the federal budget for 2024-25.

The budget increased the withholding tax on cement to 2.5% for non-filers and doubled the Federal Excise Duty from Rs. 2 to Rs. 4 per kilogram. Dealers are worried about the financial impact of these taxes and the mandate for Point of Sale (PoS) machines, which many lack the resources to implement.

The All Pakistan Cement Dealers Association has called for a presumptive tax regime to avoid business closures and job losses. Despite these issues, cement exports from Pakistan have seen a significant increase.