Dealers' strike may impact cement sales and distribution in Pakistan

The sales and distribution of cement across Pakistan is expected to be significantly impacted due to a strike by one of the stakeholders, effective from 1 July, in protest of negative tax measures taken in Islamabad in the Federal Budget 2024-25. 

The All Pakistan Cement Distributors Association (APCDA) has informed the government about the impact on the business following the approval of the 2024-25 federal budget and its stringent tax measures. APCDA pointed out that the cement distribution business has been affected due to heavy taxes following the enforcement of the new budget, and as a result, they have no choice but to go on an indefinite strike from 13 July. 

It has become impossible for cement dealers and retailers due to heavy taxes imposed on the cement distribution business in Budget 2024-25, according to an APCDA press release. The association believed most were illiterate and unable to operate a POS machine (payment terminal). At the same time, the government tax collecting authority insisted on installing it.

The taxes imposed on cement dealers and retailers should be lowered and paid from the margin discount from the cement companies. Due to heavy taxes (inflation) and excess load, the skyrocketing price of cement has become unaffordable for the consumer. An appeal is made to the government of Pakistan to exclude cement dealers and consultants from the Maximum Retail Price Sales Tax Act. Therefore, distributors and dealers announced closing their businesses on Saturday, 13 July 2024, and the strike will continue until their demands are met, said Chaudhry Sajid Ali, chairman of APCDA.