The cement cartel

As reported in newspapers, a team of Competition Commission of Pakistan (CCP) raided the office of All Pakistan Cement Association's headquarters at Lahore on April 18 and impounded records and computers containing data on cement production in the country. The action is reportedly taken to verify whether the manufactures have formed a cartel leading to increase in the prices of cement. After privatisation, and especially after the previous regime's lax regulatory control, the cement producers have formed a cartel and whenever they feel like increasing the price of cement, they do it at will. This unbridled and unfair increase in price from time to time has caused a seizure of the construction activity in the country. The action of the CCP is welcome because it will have a salutary effect on other cartels such as sugar and petrol as well. However, this admirable effort will be wasted if tax authorities (income-tax, sales tax and excise) are not allowed accessibility to the plethora of information received. I would, therefore, ask the federal revenue authorities to approach the CCP for getting the impounded material and recover the unpaid of taxes, if any, from the cement producers. At this juncture of serious financial crisis, recovery of unpaid taxes from this most vibrant sector of economy will be of great help. -RAFIQUE AHMED SIDDIQI, Karachi, via e-mail, May 4.

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