Steel makers seek continuation of tariff-based VAT

Staff Correspondent | Published: 00:00, Apr 25,2019 | Updated: 23:08, Apr 24,2019

 
 

Three associations of steel manufacturing sector on Wednesday demanded continuation of the existing tariff-based value added tax on rod and steel-made products in the distribution level instead of imposing VAT under the new law.
The associations — Bangladesh Steel Manufacturers’ Association, Bangladesh Re-Rolling Mills Association and Bangladesh Steel Mill Owners’ Association — made the demand at a joint press briefing at National Press Club in Dhaka.
BSMA general secretary Mohammad Shahidullah said that existing tariff-based fixed VAT of Tk 900 on each tonne of rod was very easily collectable for the government and there was no scope of complexity.
He cautioned that the prices of one tonne of rod would go up by Tk 9,000 if the businesses were to pay VAT under the new law which would come into force on July 1 and such taxation measures would affect consumers at large.
Speaking about the raw material for steel manufacturing, Shahidullah urged that the government should keep VAT and import duty on ferrous waste and scrap unchanged at zero and Tk 1,500 respectively.
The BSMA GS also proposed for withdrawal of 7 per cent advance income tax deducted at source on total turnover citing such taxation as irrational and discouraging.
Mentioning fuel cost as the second largest expenditure for the steel manufacturers, he requested the government not to hike prices of gas as it would increase production cost of one tonne of steel by Tk 4,000.
Increase in prices of steel would ultimately hamper infrastructural development as well as the housing sector, he said.
Requesting the government not to facilitate duty free import of rod for mega projects of the government, the association GS said that such facility would hamper growth potential of the sector.

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

images

 

Advertisement

images