Steel makers in Bangladesh are seeking reduced import duty, value added tax (VAT) and other tariffs in the upcoming national budget to provide products at lower prices, meaning that construction costs would likely decrease.
In a letter to Finance Minister AHM Mustafa Kamal earlier this month, the Bangladesh Steel Manufacturers Association (BSMA) proposed slashing VAT on sales to 1 per cent from 2 per cent.
In addition, VAT should be cut to Tk 450 from Tk 1,200 per tonne for locally sourced and imported scrap and billet, and Tk 900 from Tk 2,200 per tonne for purchases of mild steel (MS) products.
Similarly, customs duty should be reduced to Tk 500 from Tk 1,500 per tonne and advance income tax to Tk 100 from Tk 500 per tonne, it said.
The BSMA made these demands considering the current market situation, which remains unstable due to the global economic downturn brought on by various crises.
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