Cement Sector demands tax credits on track and trace investments

    The All Pakistan Cement Manufacturers’ Association (APCMA) welcomes the recent statement by the Honorable Prime Minister of Pakistan on the implementation of the track and trace system by the Federal Board of Revenue and the initiation of an investigation to probe the mismanagement in its implementation.  

    The APCMA in various meetings and correspondence with the FBR has maintained from day one that the track and trace system cannot function within the cement industry and will not achieve the desired results. Such views however were not taken seriously by the FBR and the cement industry was coerced into purchasing equipment worth billions of rupees for implementing the track and trace system.

     Various trial runs of the track and trace system in the cement industry failed miserably and instead of removing the shortcomings, the dispatches of the cement industry were stopped by the FBR to forcefully implement the track and trace cement.

     A collective approach to the implementation of the track and trace system would have saved valuable foreign exchange lost in importing machinery and may have yielded better results. The cement industry has supported this initiative from the very first day and instead of challenging its implementation, as was the case with some other industries, engaged with the FBR in good faith, as successful implementation of the system would have prevented tax fraud. 

    The cement industry is amongst the highest contributors to the national exchequer and has contributed approximately PKR 240 billion in taxes in TY 2022-23. Furthermore, the cement industry also earns valuable foreign exchange by exporting cement and such exports in the year 2022-23, clocked in at approximately USD 210 million. 

    The APCMA urges the Government to compensate the industry through tax relief for heavy investments made in the implementation of the track and trace system. 

    “The cement industry played its role in the implementation of the track and trace system in the national interest but after its failure, the industry needs tax relief adjustments for its heavy investments in the system because the industry is in crisis due to decreasing economic activities, limited development activities, and increase in production cost,” reasoned the spokesman.

    Also Read: TPL Insurance Limited and Regal Automobiles Forge Strategic Partnership for Innovative Solutions in Auto Sector

    Latest articles

    AAOIFI and Meezan Bank jointly hosted a public hearing session on the new AAOIFI Sukuk Standard

    The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) with Meezan Bank hosted a significant public hearing session on the draft Shariah Standard...

    Suleman Dawood School of Business Reaccredited by AACSB International

    AACSB International Board of Directors has extended the accreditation for the degree programmes offered by the Suleman Dawood School of Business (SDSB) at LUMS. In...

    Foreign Investors Express Concern Over Pakistan’s Security in OICCI 2024 Survey

    The Overseas Investors Chamber of Commerce and Industry (OICCI), has released the results of its latest Security Survey 2024, highlighting increasing concerns over the...

    Aoun Ali Khan: Captivating Audiences Across Music, Film, and TV with Unmatched Creativity

    Aoun Ali Khan, brimming with talent, has hit the music, film, and TV headlines in an extraordinary outpour of creative fervor. The multi-faceted artist,...

    Related articles