NBR withdraws SD on limestone

The National Board of Revenue (NBR) has withdrawn the supplementary duty (SD) on limestone to ensure low-cost infrastructural development in the country.

The Internal Resource Division issued a Statutory Regulatory Order (SRO) in this regard on Monday, saying the withdrawal of total SD on limestone will remain effective until further notice.

While importing limestone, the traders currently pay a 30 per cent SD.

The country is dependent on imported limestone, used in various sectors along with the cement industry. The previous imposition of SD has been pushing the import costs of the cement industry, said sector insiders.

According to their estimation, the use of 11 kg limestone in 50 kg cement costs an additional Tk 9.48 because of the imposed SD.

Earlier, in a letter to NBR, the Bangladesh Cement Manufacturing Association (BCMA) demanded the withdrawal of SD from raw materials of cement.

According to BCMA, around 35 local and foreign enterprises produce around 79 million tonnes of cement annually against the annual demand of 39 million tonnes.

More than 15 lakh people, directly and indirectly, are involved in the sector and the total investment amount in the sector is over Tk 40,000 crore. The companies also pay taxes of around Tk 6,000 crore annually, said BCMA.