KARACHI: Federal Board of Revenue (FBR) has launched mega crackdown against cement manufacturers for alleged tax evasions.
FBR sources told PkRevenue.com that an army of taxmen had been posted at the factory premises of cement manufacturers in order to monitor sales and purchases of the company.
“The FBR has invoked Section 40B of the Sales Tax Act, 1990 for deputing officials at factory premises for stock checking of cement companies,” an official said on condition not to be named.
The revenue body suspected that cement companies were evading federal excise duty (FED) after the enhancement of tax rates through Finance Supplementary Act, 2023.
The FBR deputed officers at cement companies, included: Fecto Cement Limited; Zeal Pak Cement Factory Limited; Power Cement Limited; Dewan Cement Limited; Dewan Hattar Cement; Attock Cement Pakistan Limited; Thatta Cement Co. Ltd.; Lucky Cement Limited; and Cherat Cement.
The officer deputed at the cement factory have been directed to conduct initial stock taking in supervision of a senior officer.
Furthermore, weight bridge daily inward/onward record along with copy of documents generated shall be obtained and retained. Besides, daily fuel to clinker/cement production ratio shall be determined on daily basis.
The sources said that the FBR officials had been posted at the cement factories for a period 30 days from April 07, 2023.
The government enhanced the FED rate on cement supplies through Finance Supplementary Act, 2023.
The FBR in its explanation to the changes made through the Finance Supplementary Act, 2023, stated that the rate of FED on cement was Rs2/kg which was reduced to Rs1.5/kg as part of the relief measure in the wake of COVID-19 pandemic through Finance Act, 2020.
“In order to bring at par with the rate prevailing prior to July 1, 2020, the rate of FED on cement has been increased to Rs2/kg.”
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