Displaying items by tag: Tax

Trinidad & Tobago: Rock Hard Cement says it will close during January 2021 in Trinidad due to alleged changes in government tariffs on imported cement. It hopes to reopen In February 2021, according to the Trinidad & Tobago Guardian newspaper. The company has published advertisements in local media warning of potential price rises of up to 80% in 2021. As well as changes to import costs the cement importer claims that the quantity of imported cement will be restricted to 75,000t/yr. The Ministry of Trade and Industry said it couldn’t comment on the matter as it is currently undergoing legal proceedings.

Pakistan: The government has extended its construction industry fixed tax regime by a further year until 31 December 2021. In a live address to the country, Prime Minister Imran Khan said that the move was in response to ‘big’ demand from the sector, according to the Dawn newspaper. Other incentives unveiled during the broadcast included an exemption for builders from disclosing sources of income to tax authorities until 30 June 2021. The measures follow the government’s introduction of the foreclosure law, under which banks are aiming to allocate US$2.36bn towards house building until 31 December 2021. Khan called 2021 a ‘year of growth.’

Philippines: The Tariff Commission (TC) has said that it was unaware of a Department of Trade and Industry (DTI) order imposing higher-than-scheduled duties on imports of cement. The Manila Bulletin newspaper has reported that TC commissioner Ernesto Albano said that it was legally ‘impossible’ for rates to rise above the previously scheduled US$0.19/bag. The DTI order in December 2020 set a duty of US$0.20/bag in the second year of the three-year tariff scheme. Albano said, "The DTI cannot do that. The schedule has been set.” He added, “The industry should improve so the duty should go down."

The Bureau of Customs (BOC) has implemented the new rate imposed by the DTI.

India: The Ministry of Finance Central Board of Direct Taxes (CBDT) says that its Income Tax department has detected US$95m-worth of tax evasion by Chettinad Cement and Anjani Portland Cement owner Chettinad Group. The Deccan Herald newspaper has reported that following raids on its offices the tax department found evidence of inflated expenditure, unaccounted receipts and complex financial arrangements including bogus liabilities in order to reduce capital gains. The investigation continues.

Pakistan: The Ministry of Commerce has advised the government that a concessionary rate for cement companies for the supply of electricity would reduce costs and increase international competitiveness. The Business Recorder newspaper has reported that the ministry proposed the measure due to the industry’s ‘immense’ potential for exports. In the 2020 financial year, the country exported US$266m-worth of cement. The ministry said that the current government’s policies would cause this to ‘substantially’ increase.

India: Tax authorities have raided 10 offices of Chettinad Cement and its subsidiaries in Telangana and Andhra Pradesh. The Times of India newspaper has reported that the officers are investigating allegations of tax evasion.

Mexico: Cuautinchán city council granted permission for Cemex to resume cement production at its 7.2Mt/yr integrated Tepeaca plant in Cuautinchán following its suspension on 1 October 2020 for failure to pay city rates.

The Municipios Puebla newspaper has reported that Cuautinchán mayor José Pérez opposes the reopening, accusing Cemex of quarrying over 4.44km² in a remote area where its licence extends over a site of just 12.0km². He stated that Cemex has caused environmental deterioration and failed to comply with road upkeep requirements, adding, “It is not a company that has established co-responsibility against municipalities.”

Pakistan: Leading cement producers have said that prices will rise by 10% before 2021 if a reduction in Federal Excise Duty (FED) to US$5.95/t of cement from US$11.9/t does not materialise. DG Khan Cement owner Nishat Group chair Mian Mansha said, “Failing this, producers will take a US$119m total hit on revenues,” according to the Express Tribune newspaper.

Russia: The Ministry of Finance of Sverdlovsk Oblast has named Buzzi Unicem subsidiary SLK Cement amongst the winners of Best Taxpayer of the Year 2019, an award that recognises commercial contributions to the regional economy by taxpaying in order to “raise the profile of companies and increase their role in the socio-economic development of the territory.” SLK Cement paid US$23.0m in taxes in 2019, up by 2.4% year-on-year from US$22.5m in 2019.

General director Andrey Immoreev said, “Honesty and compliance with the law are one of the key values of the Buzzi Unicem business code, in accordance with which we work. In our activities, we strictly follow the legal norms in the field of labour protection, industrial, fire, sanitary and epidemiological, environmental safety, taxes and Gosudarstvenii Standart (GOST) and international cement quality standard regulations, as well as retaining a customer focus in the company. In addition, despite the external factors associated with the coronavirus pandemic, we confidently continue to implement investment projects to modernise production equipment and provide assistance to the territories in which we are present.”

Pakistan: The Competition Commission of Pakistan (CCP) has launched an investigation into alleged collusion between cement companies that may have been the cause of a localised cement price spike in northern Pakistan. On 25 July 2020 the Pakistan Bureau of Statistics (PBS) recorded cement price rises of up to 8.9% in Punjab and Khyber Pakthunkhwa compared to a month earlier, according to the Profit newspaper. Officials had predicted a nationwide price drop after the government abandoned the Federal Excise Duty (FED) on cement in June 2020. Prices have decreased by a small margin in the southern regions of Balochistan and Sindh.

The Ministry of Industries and Production previously asked producers to lower cement costs in May 2020 in order to boost construction in the interest of the post-coronavirus lockdown economic recovery.