Cut import duties on scrap metals, cement clinkers: Stakeholders

The government has been urged to reduce import duties on raw materials for manufacturing construction materials in the upcoming budget for fiscal year 2025-26 to facilitate the sector's growth for the sake of the country's economy.

The steel makers have sought to lower customs duty on imported scrap metals from Tk 1500 to Tk 500 per tonne while cement producers requested for lowering the duty on clinker to Tk 200 per tonne.

They put forward the pleas at a pre-budget meeting organised by the National Board of Revenue (NBR) at its office in the city's Agargaon area on Wednesday, presided over by NBR Chairman Abdur Rahman Khan.

Representatives of different sectors, including construction materials, telecom, tobacco, pharmaceuticals and beverage took part in the meeting.

Bangladesh Steel Manufacturers Association (BSMA) Senior Vice President Md Shahidullah presented the steel sector's budget proposal, pointing out that steel, a vital sector for the entire economy, is largely dependent on purchasing raw materials from abroad.

However, the sector is currently facing a serious setback due to higher operational costs, he added.

The BSMA demanded reducing the Tax Deducted at Source or TDS on sales from existing 2.0 per cent to 1.0 per cent, advanced income tax (AIT) on imported scrap metals from Tk 500 to TK 200 and regulatory duty (RD) on Ferroalloys at import level from 15 per cent to 5.0 per cent.

Md. Alamgir Kabir of the Bangladesh Cement Manufacturers Association (BCMA) said that unfortunately a 10 per cent SD was implemented on the import of limestone in January this year. He expected it to be exempted in the budget for FY 2025-26.

The BCMA urged the NBR to simplify the procedures at customs houses, impose a tariff system on VAT calculation, and easing the tax exemption export.

Tobacco-related organisations and major companies, including Bangladesh Bidi Shilpo Malik Samity, also presented their budget proposals at the same meeting. Speaking on the occasion, the NBR Chairman said they would not increase the taxes on cigarettes in the next fiscal year.

However, he warned of stern actions against the bidi makers who evade taxes.

"Why do you use fake band rolls? Often tonnes of fake band rolls are forfeited," he said. "If you continue to evade taxes, we shall take tough actions. We would enact new laws if necessary."

British American Tobacco, Japan Tobacco International, and local cigarette and bidi manufacturers presented their proposals for the upcoming budget.

Mr Khan also said the lottery on value added tax (VAT) receipts generated through electronic fiscal devices (EFD) will resume after Eid.

It was suspended as the NBR often didn't find any claims from winners, he said, adding that necessary actions will be taken to promote the lottery.

The Bangladesh Association of Pharmaceutical Industries (BAPI) proposed reducing duty substantially from existing 127.72 per cent on importing containers for nasal spray, dust cap, and spray pump.

It also proposed to reduce corporate tax to 25 per cent from existing 27.5 per cent.

Beverage makers requested for exempting supplementary duty on bottled water.

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