Pakistan: producers warn that tax increase will encourage smuggling

The All Pakistan Cement Manufacturers Association (APCMA) has warned that the decision to impose an additional excise duty imposed in this year’s federal budget 2016-17 could lead to a rise in smuggling of cement from Iran.

The Nation reports that the Pakistani cement industry lost 1Mt in sales due to Iranian cement being smuggled into coastal areas. The APCMA criticised what it said was a lax regime of border controls and called on the government to act.

Cement producers in Pakistan noted that their industry is already one of the most highly-taxed sectors in the country and warned that exports had begun to suffer.

The APCMA called on the government to subsidise the cost of shipping domestically-produced cement abroad in order to help reverse the declining export trend.