The Federal Board of Revenue (FBR) has found that the cement manufacturers paid Rs900 million less tax during the first six months (July-Dec) of the current fiscal year owing to price reduction of Rs80 per bag of cement.
Chairman FBR Abdullah Yousaf had directed the Sales Tax authorities to apprise him about the causes of less revenue paid by the cement industry in the current fiscal year despite achieving higher growth.
According to the analysis done by the Sales Tax and submitted before the Chairman FBR office, the cement industry paid Rs1.7 billion tax during the first half of the current fiscal year compared to Rs2.6 billion in the same period of the last financial year.
It shows that there was less revenue of Rs900 million paid by the cement manufacturers in the current fiscal year. “The major cause for this revenue reduction was price differential in this period as the average price of per bag reduced from Rs300 to Rs220, registering a decrease of Rs80 per bag in the domestic market,” stated the analysis.