LAHORE: The Pakistan Chemicals Manufacturers Association (PCMA) has expressed serious concern over proposed increase in royalty and excise duty on salt for fiscal year 2026-27, warning that the move could significantly raise production costs and adversely affect Pakistan’s industrial competitiveness.
Chairman PCMA Haroon Ali Khan in a statement said the salt-based industrial value chain, particularly the caustic soda industry, is a vital contributor to Pakistan’s manufacturing sector, supplying essential raw materials to key industries including textiles, leather, soaps, detergents, paper, and other downstream sectors.
He maintained that salt royalty and excise duty were previously increased from Rs 150 per ton to Rs 430 per ton, representing an increase of approximately 186 percent. This substantial rise has already placed a significant financial burden on chemical manufacturers and related industries.
“Any further increase in salt royalty and excise duty will directly escalate production costs, weaken industrial competitiveness, and place additional pressure on domestic manufacturing,” Haroon Ali Khan warned.
The PCMA chief stressed that locally produced caustic soda is primarily consumed within Pakistan’s domestic market, where manufacturers have limited capacity to absorb rising input costs or transfer them to customers. As a result, additional taxation on a critical raw material could have far-reaching consequences for the entire industrial supply chain.
The PCMA urged the mines & minerals department Punjab, and other relevant authorities to engage in meaningful consultations with industry stakeholders before finalizing any proposed increase.
Copyright Business Recorder, 2026