‘Withdraw proposed taxes’

Steel makers urge govt

26 June, 2019 12:00 AM printer

Three trade bodies in the steel manufacturing industry have demanded withdrawal of proposed taxes on different stages of steel rod production and sale.

Instead, they proposed to pay Tk 2,250 as fixed VAT in place of the existing fixed VAT of Tk 1,400 on production and sale of steel rod, reports UNB.

The three bodies - Bangladesh Steel Manufacturers Association (BSMA), Bangladesh Re-rolling Mills Association (BRRMA), and Bangladesh Steel Mills Owners Association (BSMOA) - placed the demands at a joint a press conference at Jatiya Press Club on Tuesday.

In a prepared statement, BSMA Secretary General Muhammad Shahidullah said they have to pay about Tk 10,350 incremental taxes if the new VAT and other taxes come into effect.

This will substantially push the prices of steel rods to Tk 73,000-75,000 from the existing Tk 63,000-65,000 per metric ton (MT).

According to the steel manufacturers, now Tk 1,400 per MT VAT is applicable on MS rod sales. Of this, Tk 300 is VAT on scrap, Tk 450 fixed VAT on billet sales, Tk 450 on MS rod sales and Tk 200 VAT on retail sales.

But in the proposed budget, Tk 1,750 was proposed as VAT on scrap at a rate of five percent, Tk 2,000 as VAT on billet sales, Tk 2,000 fixed VAT on MS rod sales and Tk 3,300 on retail sales.