The government of Pakistan may witness a revenue loss of PKR400m per month due to closure of cement companies on the backdrop of unsustainable prices of cement in the local market, industry sources told the Daily Times.
They further said that it is estimated that the government is incurring a revenue loss of PKR10.3 million on daily basis due to the closure of cement companies.
On a 50kg cement bag, PKR35 is deducted as federal excise duty (FED) and PKR32 is deducted under the head of sales tax and special excise duty," they added.
The prices in the northern zone were between PKR325-330/50kg bag, while in southern zone these vary between PKR350 to PKR360/50 bag. The current price is hovering around PKR230-240/50 kg bag.
Due to these unsustainable prices of cement six cement-manufacturing units suspended their production at the start of the current month. These include Gharibwal Cement Limited, Dandot Cement Limited, Dewan Cement Limited, Flying Cement Limited, Dadabhoy Cement Industries and Pioneer Cement Limited.