National Assembly was informed on Thursday that cement export is exempted from excise duty and GST but both taxes are applicable to cement being sold in the local market.
Parliamentary Secretary Industries Pir Haider Ali Shah told the House that if the Parliament desired to provide relief to cement consumers, it can decide to withdraw excise duty and GST for cement used within the country. “This will definitely bring down cement prices,” he said.
He said different factors like increase in power and gas tariff, inflation and dollar exchange rate resulted in increase of cement prices. The government also receives 16% GST on cement and Rs 400 excise duty per tone, he said, adding that the government had convened a meeting of cement producers for January 31 which the members can also participate in.
Members Abdul Majeed Khan, Shakir Bashir Awan, Nighat Parveen Mir, Nisar Tanveer and Shireen Arshad Khan had drawn the attention of the Minister for Industries towards increase in cement prices by Rs 50 per bag.
The members questioned as to what steps the government will take to stop smuggling of cement to Afghanistan, announce subsidy on the commodity and check its hoarding and black marketing especially in small cities and towns where it is being sold at a much higher price.
