The imposition of an additional 10% supplementary duty on the import of aggregates, primarily stone, is taking a heavy toll on the ready-mix concrete sector, driving up the import cost by up to Tk350 per tonne.

As a result, the cost of preparing ready-mix concrete has also increased by Tk25-Tk30 per cubic foot. Yet some ready-mix companies are producing low-quality products without increasing the prices, which is posing serious risks for the infrastructure sector, sources related to the sector claimed.
Consequently, the Bangladesh Ready Mix Concrete Association (BRMCA) has demanded the withdrawal of supplementary duty on the import of aggregates for the sake of quality infrastructure.

Construction of buildings in the country now highly depends on ready-mix concrete. Engineers prefer ready mix as it is eco-friendly, time-saving and durable.
Since the beginning of commercial production of ready mix in 1990, the sector received a considerable amount of investment within a short period of time due to upward market demand.
Currently, 22 companies produce ready mix in the country. Though all these companies are local, they need to import stone.

 The sector insiders said concrete strength depends on mix design, quality of cement, stone, sand and water. If they are not properly shaped, the strength of concrete is greatly reduced.
People related to the sector said the construction work on most of the infrastructure development projects, including mega projects, has already stalled after the fall of the fascist Awami League regime on 5 August last year.

Besides, the commercial and private housing industry has been undergoing a kind of stagnation. This has led to a collapse in the ready-mix concrete sector.
In such a situation, on 9 January, the government increased the value-added tax (VAT) and supplementary duty on over 100 products and services, including stones.
The cost of importing stone increases the cost of preparing ready-mix concrete. However, some companies are using low-quality products to sell ready mix at old prices.

This is creating risk in the infrastructure sector.
Several experts in this sector said construction work in the housing and infrastructure sector has already decreased due to the ongoing instability. Therefore, the ready-mix concrete sector is facing losses.
In order to survive, many companies are compromising on quality without increasing the prices. These substandard products are posing serious risks in infrastructural development.
Speaking about the issue, Suvrajit Das Gupta, secretary of BRMCA, said, "The cost of ready-mix concrete companies has increased due to the imposition of 10% additional duty on stone imports. It has already had a negative impact on business. We’ve submitted several applications to the National Board of Revenue (NBR) to withdraw the supplementary duty. I hope the NBR will consider the matter soon."