The National Board of Revenue (NBR) has slashed Advance Income Tax (AIT) on import of raw materials for local steel manufacturers by Tk 300 per tonne.
The reduced rate will come into force from July 1 with a retrospective effect. However, ship-braking industry will not be entitled to enjoy the reduced tax benefit.
In the budget for the current fiscal year, 2019-20, the NBR's Income Tax Wing fixed the AIT at Tk 800 per tonne, which is now reduced to Tk 500 per tonne.
The wing has issued a pre-publication gazette in this regard on August 24. It will be considered as final notification, unless the board receives any objection in this matter within seven days of publication, officials said.
The decision came following pleas of the steel and steel products manufacturers on the ground of keeping their production cost low.
Earlier, industry insiders claimed that prices of Mild Steel (MS) rod might go up due to imposition of higher taxes on import of raw materials for steel and steel products.
Cost of real estate and construction sectors as well as the government's different development projects would escalate with the price hike of steel products, they added.
Currently, import of 15 types of raw materials for steel sector is entitled to enjoy a concessional rate of AIT.
The raw materials are - semi-finished products (billet) of iron or non-alloy steel, ingots, ferrous products, ferrous waste and scrap, re-melting scrap, and vessels and other floating structures for breaking up.
Earlier, the Bangladesh Steel Manufacturers Association (BSMA), the Bangladesh Re-Rolling Mills Association (BRRMA), and the Bangladesh Steel Mills Owners Association (BSMOA) held a joint press conference on June 25.
The three trade-bodies demanded reduction of various types of taxes on them.
They also proposed to cut the AIT to Tk 300 per tonne on import of raw materials for the industry.
Some 3,600 types of different industries and sectors, including construction, are involved with the steel industry.
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