APCDA urges govt to address grievances due to new taxes

LAHORE: The All Pakistan Cement Distributors Association (APCDA) urged the government on Tuesday to allocate time to hear their grievances, which have escalated sharply due to heavy taxation imposed in the budget for 2024–25.

They sought a collaborative resolution to relieve distributors from complex tax procedures while ensuring revenue generation for the government.

Speaking at a press conference, APCDA Chairman Chaudhry Sajid, alongside colleagues, emphasized that conducting business has become unfeasible due to substantial tax hikes, increase in withholding tax, introduction of point-of-sale (POS) systems, turnover tax imposition, and other measures.

He argued against categorizing the cement sector as Fast Moving Consumer Goods (FMCG) and criticized the Federal Board of Revenue (FBR) for insisting on POS systems despite the challenges faced by illiterate dealers and retailers in operating these machines.

Sajid highlighted the excessive taxation burden on cement dealers and retailers, which cannot be sustained through their current profit margins, necessitating potential price hikes for consumers. He also criticized cement companies for their lack of cooperation on tax issues related to the Sales Tax Act Schedule III (Maximum Retail Price).

The APCDA office-bearers proposed that cement dealers and retailers be exempted from Schedule III or be included in a Presumptive Tax Regime to streamline tax procedures. They expressed readiness to pay taxes but called for relief from complex tax systems and advocated for taxes to be imposed at the source to prevent harassment by FBR officials.

Chaudhry Sajid said that despite announcing a strike last Saturday, there has been no government contact in the past 11 days to address their concerns, warning of potential disruptions to construction activities nationwide.

Copyright Business Recorder, 2024