FBR sets minimum retail price for cement to streamline tax collection

According to an official notification, a minimum retail price has now been fixed for cement, which will serve as the basis for sales tax calculation.

Web Desk

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29 Apr 2025

ISLAMABAD – The Federal Board of Revenue (FBR) has unveiled a revised sales tax recovery mechanism specifically for the cement sector, aimed at curbing tax evasion and improving transparency.

According to an official notification, a minimum retail price has now been fixed for cement, which will serve as the basis for sales tax calculation.

The FBR stated that the benchmark price will align with the national average retail price published by the Pakistan Bureau of Statistics (PBS).

The pricing reference will be based on the weekly average price reported just before the 1st and 16th of each month, and this system will officially take effect from May 1, 2025.

As per the latest PBS data, the average market price for a 50-kilogram bag of cement stood at Rs1,410 prior to May 1.

This new pricing method is part of the FBR’s broader effort to enforce tax compliance across key industrial sectors by tying tax collection to verifiable market rates.