Steel manufacturers urged the government to reduce customs duty and advance income tax (AIT) on the import of raw materials for steel and rods industry.
“The government has lifted advance on import of raw materials of steels in FY2021-22, but there was no reduction in customs duty and advance income tax,” said Bangladesh Steel Manufacturers’ Association (BSMA) at a post-budget press statement on Tuesday.Reduction of customs duty and advance income tax on import of raw materials of steel and rods has been a long demand from the steel manufacturers, the statement added.
AT a pre-budget meeting, BSMA made such call to the government.
BSMA said the prices of ferrous waste and scarp increased a lot in the global market due to the COVID-19 pandemic. Earlier, the import price of each tonne of scrap was $300, which now stands at $530 in the global market.
But the government did not pay any attention to their demands in the proposed budget, the BSMA said.
Thanking the government, however, for reducing AT on the import of steel raw materials, the steel manufacturers urged the government to also cut CD and AIT on the import of raw materials. “Bangladesh is completely an import-dependent country for its steel industry. The industry deals with ferrous waste and scrap, re-melted ingots and products made from such metal of all shapes and sizes such as angles, rods, plates and pipes,” BSMA statement said.
Currently, the country’s per capita steel consumption is 45 kg, up from 25 kg in 2012 and is forecasted to reach 73 kg by 2022. According to the leading steel manufacturers, more than 4 million tonnes of steel was produced in 2016 representing a market value of $3.57 billion which is estimated to double by 2022. Bangladesh is one of the few countries in the world that is vastly outperforming the global growth.