LAHORE, Jun 22 (APP):All Pakistan Cement Distributors Association (APCDA) Monday urged the government to revert the decision of hike in turnover tax for the cement distributors. The APCDA argued that increase in turnover tax on cement distribution from 0.25 percent to 1.25 percent has made it unbearable for the business community. The cement distributors had been operating under the presumptive tax regime for several years, where tax deducted on commission …
APCDA urges govt to revert hike in turnover tax
LAHORE, Jun 22 (APP):All Pakistan Cement Distributors Association (APCDA) Monday urged the government to revert the decision of hike in turnover tax for the cement distributors.
The APCDA argued that increase in turnover tax on cement distribution from 0.25 percent to 1.25 percent has made it unbearable for the business community. The cement distributors had been operating under the presumptive tax regime for several years, where tax deducted on commission was treated as the final discharge of liability. However, this system has now been abolished and replaced with a turnover tax.
The PSCDA delegation brought forth their concern during their visit to Lahore Chamber of Commerce and Industry (LCCI). The delegation, led by APCDA Chairman Sheikh Abdul Majeed, met LCCI President Faheem Ur Rehman Saigol. Former President of FPCCI and LCCI, Mian Anjum Nisar, was also present. Other members of the delegation included Patron-in-Chief Munir Chaudhry, former chairman Chaudhry Sajjad Ali, Rao Naveed, Arif Khan, Tahir Mahmood and Khurshid Anwar.
During the meeting, detailed discussions were held on the financial and taxation issues being faced by cement distributors. They expressed concerns over the rising burden of withholding taxes, the recent increase in turnover tax.
LCCI President Faheem Ur Rehman Saigol said that the business community is already facing major challenges including high energy costs, elevated interest rates, fluctuations in the rupee value and economic uncertainty. In such circumstances, he added, increasing taxes at this scale is proving damaging for business environment.
He said that this move would not only increase the cost of doing business but also affect the investment climate. He added that sustainable growth in revenue can only be achieved by expanding the tax net.
Former FPCCI president Mian Anjum Nisar said that economic stability depends on the continuity of business activities. However, tax increases damage business confidence, citing that increase in turnover tax from 0.25 percent to 1.25 percent is unprecedented and has multiplied business costs.
Chairman Sheikh Abdul Majeed said, the price of cement per bag has increased significantly over the past two years, resulting in a substantial rise in withholding taxes and other financial obligations. This situation has made operating costs unbearable and is making it increasingly difficult for distributors to continue their businesses.
He said, cement distribution sector has served as the backbone of the country’s construction industry for decades, but recent move has placed it under severe pressure.
