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News Pakistan government to raise cement plants’ taxes for capacity underutilisation

Pakistan government to raise cement plants’ taxes for capacity underutilisation

Written by Global Cement Staff 22 November 2021
  • Print

Pakistan: The government plans to raise the rate of federal excise duty for cement plants operating at less than 100% capacity utilisation. The Dawn newspaper has reported that the measure aims to reduce cement prices in the country. Taxes are currently US$8.55/t of cement produced. In the 2021 financial year, capacity utilisation was at 84% of the available 69.3Mt/yr total capacity. Since the 2017 financial year, it has dropped below 75% in some years. Over the five-year period, the national cement capacity has increased at an average of 8.6% annually.

Ministry of Finance spokesperson Muzzammil Aslam said “Who should we protect: consumers or cement makers? Is it not harmful for the country that they have joined hands and set a higher market price?”

Last modified on 24 November 2021
Published in Global Cement News
Tagged under
  • Pakistan
  • Government
  • Price
  • Capacity utilisation
  • market
  • Production
  • Supply
  • Tax
  • GCW533

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