Steel makers demand withdrawal of taxes

Staff Correspondent

27 June, 2021 12:00 AM printer

Steel manufacturers have demanded withdrawal of taxes in the national budget proposed for the fiscal year 2021-22.

The manufacturers said they are struggling to adjust prices in retail market amid the hike of raw materials’ prices in the global market.

In a statement on Saturday, the Bangladesh Steel Manufacturers’ Association (BSMA) also urged the government to increase allocations for the on-going development projects to address the price hike.

“The steel manufacturing industry depends on international market for its raw material of melting scrap,” read a statement signed by BSMA secretary general Muhammad Shahidullah.

 “The raw material was imported from United States, Canada, Australia and Europe countries. The opening of raw import into China has created a pressure in supplier countries,” it said.

The statement added that the unit price of melting scrap increased to $590 from $350, “which has badly impacted the steel manufacturing industry.”

The local steel manufacturers pay Tk 1500 for importing each ton of melting scrap, advance income tax of Tk 500 and 4 percent advance tax on the import, according to the trade body.

BSMA said the sector also experienced a hike of prices of main chemical, Ferro alloys in the global market.

The chemical price hiked to $1450 from $800 per ton, it said.

Considering the circumstances, the steel manufacturers requested the government to withdraw the taxes for sake of livelihood of 20 million people involved in the sector.