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Friday | August 14, 2026 | Dhaka

BCMA calls for withdrawal of AIT

 New Nation
 Published: 12:00 AM, 13 June 2023  Updated: 10:50 PM, 12 June 2023
Md. Alamgir Kabir, President of Bangladesh Cement Manufacturers Association (BCMA) and Vice-Chairman of Crown Cement Limited, speaks in a press conference at a city hotel in the capital on Monday. Masud Rana, General Manager of Akij Cement, Mahmud Hasan, CEO of Siam City Cement, Shankar Kumar Roy, Executive Director of BCMA and Ferdous, General Manager of Bashundhara Cement, were present.

Business Report :
The Bangladesh Cement Manufacturers Association (BCMA) has called for the withdrawal of a non-adjustable advance income tax (AIT), which is applied at both the import and supply stage.
Md. Alamgir Kabir, President of Bangladesh Cement Manufacturers Association (BCMA) and Vice-Chairman of Crown Cement Limited, came up this information in a press conference at a city hotel in the capital on Monday.
“So far we know this non-adjustable tax is not applicable for any other sectors. I also do not know whether such type of tax is realised in other countries,” said Alamgir Kabir.
Currently, local manufacturers pay three per cent tax at the import stage and a further three per cent at the supply stage.

Mr Kabir claimed that the industry is currently having tough time due to a variety of issues such as imposing additional import duty (Customs Duty-CD) on ‘Clinker’, the main raw material of cement which announced in Fiscal year 2023-2024 budget; Additional Income Tax (AIT), Un-adjustable AIT, a fuel shortage, high transportation costs,dollar crisis and an increasing currency value.
“We have been demanding for a long time that at the import stage, primarily AIT can be levied at a maximum of 0.50%, but it would not be appropriate to consider it as a final settlement. Therefore, we have been applying to open up the opportunity to adjust the AIT,” said Mr. Kabir.

He demanded that the customs duty on ‘Clinker’, the main raw material of the cement Industry, should be reduced from Tk 500 per metric tonne to Tk 200 per metric tonne. But in the current budget, instead of reducing CD, it has been increased from Tk 500 to Tk 700 per metric tonne (CD), as a result of which the cement manufacturers are very disappointed. Customs Duty on key raw materials of an industry is usually around 5 percent of the import value. But the Customs Duty on ‘Clinker’ stands at around 12%-13% of the import value because of the recent budget announcement on ‘Clinker’ levying a customs duty of Tk 700 per metric tonne.

He also said that, 12%-13% customs duty on the import value of key raw materials is considered disproportionate to the cement Industry owners and its detrimental effect may put additional pressure on the consumer-general in the cement market and may lead to a slowdown in overall construction activity.