Rod and cement manufacturers on Thursday urged the National Board of Revenue (NBR) to reduce Advance Income Tax (AIT) and Customs Duty (CD) in the upcoming national budget for FY24, to help keep in check the prices of construction materials.
Making the call at a pre-budget discussion meeting held at the NBR’s Agargaon office in the capital, industry leaders mentioned that the recent hike in rod and cement production costs have hit them hard.
At the event, Bangladesh Steel Manufacturers' Association (BSMA) Secretary General Md Shahidullah said, “We have to import 100 per cent raw materials to manufacture rods, but the USD crisis has seriously impacted our industry.
“Besides, the recent gas and electricity price hike made another shock for us. As a result, our production has reduced around 40 per cent.”
Shahidullah, also Managing Director of Metrocem Ispat, proposed NBR to fix Tk 450 VAT from the previous Tk 1,200 at the MS rod production and supply level, and Tk 200 on the retail level, similar to the previous year.
He added, “We also propose withdrawal of the existing minimum 0.5 per cent AIT on purchasing local scraps, and also billets sales. We request the reduction of 1 per cent TDS on rod sales from existing minimum of 2 per cent.
“I am also proposing to fix Tk 100 as Customs Duty, compared to the previous Tk 500, to check the prices of rebar, and overcome the existing challenges in the industry.”
SSRM Managing Director Sheikh Masadul Alam urged the NBR officials not to harass businesses at ports. He claimed that he had to give demurrage due to false assessment at ports.
He further mentions, “We cannot open LCs due to the USD crisis, but there is no scarcity of greenback in the hundi market. The government should take necessary steps in this regard.
“Otherwise, rod prices will rise further, and many people will not be able to afford rods in the coming days. We are currently importing scrap for over $500 per tonne, which may go up to $600 soon as the prices are on an upward trend in international market.”
Speaking at the event, Bangladesh Cement Manufacturers Association (BCMA) President Alamgir Kabir said the industry is counting loss due to increase in production costs.
“We propose to reduce CD to Tk 200 per tonne from the existing Tk 500, and 0.5 per cent AIT from the current 2 per cent on clinker imports. Besides, we also request to reduce AIT on limestone in bulk from 3 per cent AIT to 0.5 per cent,” he added.
Kabir proposed that on fly ash, the AIT should be reduced to 0.5 per cent from existing 5 per cent during raw material imports to check the prices of cement.
Bangladesh Auto Brick Manufactures Association President DMN Dulal urged the NBR to withdraw VAT on them so that customers can get bricks at a reasonable price.
NBR Chairman Abu Hena Md Rahmatul Muneem said he will consider the demands, adding, “But we are also going through a challenging time like these industries, as we have to collect revenue to meet the target.
“Bangladesh will attain LDC graduation so there is a need for boosting revenue collection.”
