Steel production drops by 40pc

Staff Reporter :
The country’s manufacturers claimed that the steel, key ingredient for construction, production has declined by 40 per cent due to insufficient raw materials and lower demand in the domestic.
The entrepreneurs are failing to open letters of credit (LCs) to import raw materials due to ongoing dollar crisis, leaving them financial losses, they said.
“Under this circumstance, Value-Added Tax (VAT) on imported scrubs needs to be reduced to Tk 900 against per tonne from the existing Tk 2200,” said Md Shahidullah, Secretary General of the Bangladesh Steel Manufacturers Association (BSMA), while speaking at a pre-budget discussion.
The National Board of Revenue (NBR) organized the discussion at its conference room in the capital on Thursday.
“The entrepreneurs are able to import only 30 to 40 per cent of raw materials for steel making due to dollar crisis. As a result, our production has decreased by around 40 per cent,” Shahidullah said, adding “NBR should remove all the procedural complexities for importing raw materials.”
Bangladesh Cement Manufacturers Association (BCMA) President Md Alamgir Kabir placed their 8-point proposals in the meeting including withdrawal of supplementary duty (SD) on imported limestone, reduction of Advance Income Tax (AIT) on imported raw materials of the cement sector.
“Along with the other reasons, the entrepreneurs are inuring financial losses for imposing SD on imported limestone, the key ingredient of cement. So, it should be withdrawn for expanding the sector,” said BCMA President Md Alamgir Kabir.
Meanwhile, the Institute of Cost and Management Accountants of Bangladesh (ICMAB) demanded withdrawal of source tax on agricultural goods as the purchasing power of the common people has declined significantly for higher inflation.
“The existing 2 per cent tax at source on agricultural commodities is creating a huge tax burden on the people and putting pressure on their purchasing power. So, the sector should be tax-free,” ICMAB President Md Abdur Rahman Khan said.
Considering the inflation and the country’s economic situation, the Institute of Chartered Secretaries of Bangladesh (ICSB) President of Asadullah proposed for increasing personal tax-free income limit to Tk 7 lakh.
Urging all for extending their cooperation, NBR Chairman Abu Hena Md Rahmatul Muneem said they would take all possible initiatives to expand the country’s manufacturing sector.