Cement makers have hiked prices after the government announced revised taxes on all commodities as part of contingency measures to meet additional revenue collection targets and unlock cash from the International Monetary Fund (IMF).
According to JS Research, cement players have decided to increase prices by around Rs. 50 per bag to pass on the impact of the hike in federal excise duty (FED) and sales tax.
Prices in the North region will range from Rs. 1,070-1,130 per bag post increase, depending on the area. Meanwhile, prices in the upper north area will be closer to the lower range.
Similarly, prices in the Southern region also increased by Rs. 50 per bag to around Rs. 1,070-1,120 per bag.
It is pertinent o mention here that under the Finance (Supplementary) Bill, 2023, the government has proposed to increase the FED on cement from Rs. 1.50 to Rs. 2 per kg.
Today’s hike is a byproduct of revenue requirements of the IMF; the lender sees more taxes as part of security for releasing upwards of $1.1 billion in bailout to Pakistan.
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