New Cement Prices Announced After 5% FED In Budget 2024-25

June 26, 2024Zayn0

In the Budget 2024–2025, the alliance government led by the PML–N increased the federal excise charge on cement and other commodities, burdening individuals who are planning development. The excise charge on the binding agent has gone up from Rs1 to Rs3 per kilogram amid the aggressive taxing.

Effect on the Price of Cement 

Following the announcement, cement prices increased before Eid and are predicted to rise much further in the days ahead. The price of a 50kg bag of cement increased to approximately Rs1330 due to a modification in the federal excise duty (FED), which was previously only Rs1280. In the following days, cement bag prices are predicted to reach approximately Rs1370.

Cement Prices Across Different Companies

The latest cement prices in Pakistan show a range of rates across different cement companies:

  • Bestway Cement is selling cement at Rs 1325-1330 per bag.
  • Pakcem Cement and DG Khan Cement are both priced at Rs 1330-1350 per bag.
  • Fauji Cement is being sold at Rs 1295-1275 per bag.
  • Lucky Cement and Kohat Cement are both priced at Rs 1290-1310 per bag.
  • Cherat Cement is selling at Rs 1295-1315 per bag.
  • Maple Leaf Cement is priced at Rs 1330-1350 per bag.
  • Askari Cement is being sold at Rs 1295-1315 per bag.

Burden on the Construction Industry

Building project planners will be burdened by the increase in federal excise duties on cement and other commodities. It will be more expensive to construct new buildings overall due to the rising cost of cement, which will make it harder for people and companies to start new building projects.

Effect on Affordability of Housing 

Given that cement is an essential component in the construction of homes and other residential buildings, the housing sector will be most affected by the rise in cement costs. For many potential homeowners, the rising cost of cement will result in higher new home costs, which will further reduce affordability and accessibility.

Concerns of Economic Growth 

The strain on the housing and construction sectors may have wider effects on the growth of the national economy. Since the building industry is a major contributor to economic activity, any slowdown brought on by rising costs could have repercussions for several other industries. This might be detrimental to the nation’s overall economic growth and recovery.

 

Zayn

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