Friday, July 19, 2019 | ePaper

Steel manufacturers urge govt to withdraw proposed taxes

  • Print
Economic Reporter :
Three trade bodies in the steel manufacturing industry on Tuesday demanded withdrawal of proposed taxes on different stages of steel rod production and sale.
Instead, they proposed to pay Tk 2,250 as fixed VAT in place of the existing fixed VAT of Tk 1,400 on production and sale of steel rod.
The three bodies - Bangladesh Steel Manufacturers Association (BSMA), Bangladesh Re-rolling Mills Association (BRRMA), and Bangladesh Steel Mills Owners Association (BSMOA) - placed the demands at a joint a press conference at the National Press Club in the city.
In a prepared statement, BSMA Secretary General Muhammad Shahidullah said that they had to pay about Tk 10,350 incremental taxes if the new VAT and other taxes come into effect.
This will substantially push the prices of steel rods to Tk 73,000-75,000 from the existing Tk 63,000-65,000 per metric ton (MT).
According to the steel manufacturers, now Tk 1,400 per MT VAT is applicable on MS rod sales. Of this, Tk 300 is VAT on scrap, Tk 450 fixed VAT on billet sales, Tk 450 on MS rod sales and Tk 200 VAT on retail sales.
But in the proposed budget, Tk 1,750 was proposed as VAT on scrap at a rate of five percent, Tk 2,000 as VAT on billet sales, Tk 2,000 fixed VAT on MS rod sales and Tk 3,300 on retail sales.
As a result, they said the overall cost will go up by Tk 7,650 per MT while they will have to pay another Tk 4,650 as advance income tax (AIT) at different stages against the existing Tk 1,950.
This means that the additional expense will go up by Tk 2,700.
The leaders said that as per their new proposal, if the government imposes Tk 2,250 as VAT instead of existing Tk 1,400, the government will get Tk 850 from per MT of steel rods which will be a 61 percent increase.
Through this hike, the government will earn Tk 467.50 crore as VAT from the steel sector as the country annually produces about 5.5 million MT of steel rods.
Similarly, the leaders proposed to impose AIT at Tk 300 against each MT of steel rods.
They said about 3,600 types of different industries including construction sector are involved in the steel industries which will be directly or indirectly affected by the new proposed tax structures.
They said the new taxes will also create a big pressure on the banking sector as well as the millers who depend on banks for financing.
BSMOA Founding President Sheikh Masadul Alam Masud and other leaders of three associations were present at the press conference.

More News For this Category

Marcel TV customers offered free fridges in every day

Business Desk :The local electronics manufacturer Marcel has declared a fresh offer for its television's customers on the occasion of the upcoming Eid-ul-Azha, says a press release. As per

China to invest $2m in Mongla EPZ

Business Desk :Chinese company M/s. Dongguan Bluebox Industries Bangladesh Co. Ltd. will invest US$ 2 million to establish a Packaging Manufacturing industry in Mongla Export Processing Zone. Recently, BEPZA

GTF to promote financial facilities for emerging sectors: BUILD

Business Desk :Business Initiative Leading Development (BUILD), a platform for fact-based and research-backed dialogue and advocacy, has said the Green Transformation Fund (GTF) will promote concessional financial facilities for

First Security Islami Bank Limited arranges a 2-daylong Half Yearly Business Conference at Radisson Blu Dhaka Water Garden on Thursday. Syed Waseque Md. Ali, Managing Director, Abdul Aziz, AMD, Md. Mustafa Khair and Md. Zahurul Haque, DMDs, Principal of Training Institute, Head of Divisions of Head Office, Head of Zonal Offices, Branch Managers and other officials were present in the conference.

First Security Islami Bank Limited arranges a 2-daylong Half Yearly Business Conference at Radisson Blu Dhaka Water Garden on Thursday. Syed Waseque Md. Ali, Managing Director, Abdul Aziz, AMD, Md. Mustafa Khair and Md. Zahurul Haque, DMDs, Principal of Training Institute, Head of Divisions of Head Office, Head of Zonal Offices, Branch Managers and other officials were present in the conference.

.

Bangladesh's RMG to enter Brazil, Russia within 18 months

Economic Reporter :Commerce Minister Tipu Munshi on Thursday said that the Bangladeshi RMG export items would be able to enter the markets of Brazil and Russia within the next

Mutual Trust Bank Limited (MTB) and University of Dhaka have recently launched an exclusive MTB-University of Dhaka Visa Signature & Platinum Credit Card for the teachers and officials of the University of Dhaka. The MoU signing ceremony was held on Tuesday at Dr Abdullah Faruk Conference Hall, University of Dhaka. Professor Shibli Rubayat Ul Islam, Dean, Business Studies Faculty, University of Dhaka attended the event as the Chief Guest, while Professor Dr Abul Hossain, University of Dhaka graced the event as the Special Guest.

Mutual Trust Bank Limited (MTB) and University of Dhaka have recently launched an exclusive MTB-University of Dhaka Visa Signature & Platinum Credit Card for the teachers and officials of the University of Dhaka. The MoU signing ceremony was held on Tuesday at Dr Abdullah Faruk Conference Hall, University of Dhaka. Professor Shibli Rubayat Ul Islam, Dean, Business Studies Faculty, University of Dhaka attended the event as the Chief Guest, while Professor Dr Abul Hossain, University of Dhaka graced the event as the Special Guest.

.

ADB report foresees Asia to maintain moderating growth

ADB report foresees Asia to maintain moderating growth

Business Desk :Developing Asia will maintain strong but moderating growth over 2019 and 2020, as supportive domestic demand counteracts an environment of global trade tensions, according to a new

BAB's activities to be expanded: Humayun

Business Desk :Industries Minister Nurul Majid Mahmud Humayun Thursday said the activities and manpower of the Bangladesh Accreditation Board (BAB) will be expanded to create a conducive environment for

BD primary beneficiary of US-China trade war

BD primary beneficiary of US-China trade war

Gazi Anowar :The foreign direct investment (FDI) soars in Bangladesh as foreign companies, especially Chinese firms, are relocating here to avoid higher tariff in China imposed by US government. 

Syed Mahbubur Rahman, Managing Director of Dhaka Bank Ltd and Md Miarul Haque, Country Manager of DHL Worldwide Express (BD) Pvt. Ltd, exchanging a signing document for international correspondence and communication at the Bank's corporate office recently. Md. Shakir Amin Chowdhury, DMD, Md. Altamas Nirjhar, Head of General Services Division of the Bank and ASM Shakil, Commercial Director of DHL were also present.

Syed Mahbubur Rahman, Managing Director of Dhaka Bank Ltd and Md Miarul Haque, Country Manager of DHL Worldwide Express (BD) Pvt. Ltd, exchanging a signing document for international correspondence and communication at the Bank's corporate office recently. Md. Shakir Amin Chowdhury, DMD, Md. Altamas Nirjhar, Head of General Services Division of the Bank and ASM Shakil, Commercial Director of DHL were also present.

.