Tuesday, October 15, 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

Syed Mahbubur Rahman, Managing Director of Dhaka Bank Limited, Imran Karim, Vice-Chairman and Khalid Islam, Managing Director of Zodiac Power Chattogram Limited, Md. Ekhlasur Rahman, Executive Director of Bangladesh Infrastructure Finance Fund Limited, Md. Abdul Khaleque Khan, CEO of Bangladesh Commerce Bank Limited, Humaira Azam, Managing Director (CC) of Trust Bank Limited, along with other senior officials of the respective organizations, poses for photograph after signing a Preference Shares arrangement of Tk. up to 800 million with the power company held at a hotel in the city on Saturday. This is a 54.363 MW (net) HFO based Power Plant at Potiya, Chattogram.

Syed Mahbubur Rahman, Managing Director of Dhaka Bank Limited, Imran Karim, Vice-Chairman and Khalid Islam, Managing Director of Zodiac Power Chattogram Limited, Md. Ekhlasur Rahman, Executive Director of Bangladesh Infrastructure Finance Fund Limited, Md. Abdul Khaleque Khan, CEO of Bangladesh Commerce Bank Limited, Humaira Azam, Managing Director (CC) of Trust Bank Limited, along with other senior officials of the respective organizations, poses for photograph after signing a Preference Shares arrangement of Tk. up to 800 million with the power company held at a hotel in the city on Saturday. This is a 54.363 MW (net) HFO based Power Plant at Potiya, Chattogram.

.

Walton gets best large scale industry entrepreneur

Business Desk :The country's electronics giant Walton has been honoured with 'IFIC Bank-Samakal Business Award-2018' for its outstanding contribution to the country's national economy in terms of booming large

Padma ranks 28th in remittance collection

Economic Reporter :Padma Bank, a fourth generation financial institution, has stood 28th among the 57 remittance receiving banks in the country, according to a recent central bank ranking. The Bangladesh

More countries keen to set up economic zones in BD: Salman F Rahman

Economic Reporter :Prime Minister's Private Industry and Investment Advisor Salman F Rahman on Monday said that more foreign countries are showing interest to set up exclusive economic zones in

Bank Asia wins Best Business Innovation Award

Bank Asia wins Best Business Innovation Award

Business Desk :Bank Asia has been crowned the Best Innovation Award - Financial Sector in the competition of `Bangladesh Business Innovation Award 2019' organized by Brand Forum Bangladesh, recognizing

Bourses observe another sluggish session

Economic Reporter :Country's capital bourse, Dhaka Stock Exchange (DSE) witnessed another sluggish trading session on Monday by extending the losing spell, as notable selling of shares was observed in

Syed Akthar Hasan Uddin, Director along with Shamim Ahmed, Chief Operating Officer of Guardian Life Insurance Limited (GLIL), receiving the BASIS National ICT Awards-2019 from State Minister for ICT Division Zunaid Ahmed Palak, for securing the 1st Runner Up place in Banking, Insurance & Finance Category at a hotel in the city on Friday. The company earned this recognition for EasyLife- an app based digital life insurance platform which is the first of its kind in the country.

Syed Akthar Hasan Uddin, Director along with Shamim Ahmed, Chief Operating Officer of Guardian Life Insurance Limited (GLIL), receiving the BASIS National ICT Awards-2019 from State Minister for ICT Division Zunaid Ahmed Palak, for securing the 1st Runner Up place in Banking, Insurance & Finance Category at a hotel in the city on Friday. The company earned this recognition for EasyLife- an app based digital life insurance platform which is the first of its kind in the country.

.

Mongla EZ to be lucrative place for investment

Economic Reporter :Speakers at a programme on Monday urged investors to invest in the Mongla Economic Zone (EZ) as it will become a lucrative place for investment considering its

Shirin Akhter New DMD of BKB

Shirin Akhter New DMD of BKB

Business Desk :Shirin Akhter has joined Bangladesh Krishi Bank (BKB) as Deputy Managing Director (DMD) recently. Prior to joining she was the GM of Agrani Bank Ltd. Shirin started

Seven banks renew MoUs with CPTU

Economic Reporter :Seven banks renewed their Memorandum of Understandings (MoUs) with the Central Procurement Technical Unit (CPTU) for receiving payments under the e-GP system.The banks are BASIC Bank, First Security