Demand for reduction of VAT import duty-income tax to reduce the price of rod

Senior Reporter: The Bangladesh Steel Manufacturers Association has demanded reduction of VAT, import duty and income tax to reduce the price of rod. Melting scrap, the main raw material used in the production of rods in the steel industry, is imported 60-65 per cent from abroad and 15-20 per cent from the country.

The scrap of this import-dependent industry is mainly imported from the United States, Canada, Australia, South Korea and Europe. Therefore, it has been demanded to reduce VAT, import duty and income tax to reduce the price of rod.

The organization’s secretary general Muhammad Shahidullah told the media in a statement on Saturday that the global corona epidemic had reduced imports of foreign raw materials and increased demand for the product.

Scrap prices ranged from থেকে 300 to রে 350 last October. Now it is 550-590 US dollars. As a result, several countries, including India, have reduced tariffs on imports of raw materials for rods, so Bangladesh also needs to reduce them.

Muhammad Shahidullah said at present the melting scrap import duty (CD) is Tk 1,500 per tonne and import advance income tax (AIT) is Tk 500 per tonne. In the proposed budget for the financial year 2021-22, 4 percent advance tax imposed at the import stage has been withdrawn. With the withdrawal of this advance tax, there is not much chance of reducing the price of rod. This is because the rod manufacturers could adjust the advance tax from the VAT of Rs 2,000 per tonne imposed on the rod at the sales stage.

He claimed that in order to reduce the price of rod, it is necessary to reduce the import duty from Rs 1,500 to Rs 500 per tonne, import advance income tax from Rs 500 to Rs 300 and VAT from Rs 2,000 at the sales stage.

The main chemical used in the production, Ferro Als, was priced at US ৮ 600-750 per tonne, and is currently priced at US ১ 1,400 to US 1,450. As a result, 500 W / 60 grade rods are being sold at Rs 60,000-65,000 per tonne in the domestic market at present. Which was 60-65 thousand rupees 6 months ago.

In addition, due to the Corona epidemic, container ships have been in quarantine for 14 days all over the country, which has doubled the shortage of raw materials in the factory and container fares. Therefore, if the government does not reduce the tariff, there is a danger that the price of rod will increase further, he said.


Source: Daily StockBangladesh by www.dailystockbangladesh.com.

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