Rationalise duty on import of finished steel products

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FE Report
Rod manufacturers Monday urged the government to 'rationalise' duty on import of finished steel products as they feared that the existing low tariff would encourage import of building materials posing a fresh threat to hundreds of local factories.
Currently, the duty on mild steel (MS) rod import is 7.0 per cent without value added tax (VAT) while the government slapped 25 per cent import duty on all kinds of procurements, said rod manufacturers.
The rod manufacturers and ship breakers said this at a press conference, organised at the National Press Club Monday.
Rod manufacturers and ship breakers have threatened to lay siege to the National Board of Revenue (NBR) within the next couple of weeks unless it takes step to rationalise the duty structure.
"We feel very insecure in the present context as neighbouring rod producing nations have taken steps to encourage rod export in recent times," said Dr Md Bashir Ullah, general secretary of Bangladesh Steel Mill Owners Association.
Rod manufacturers said India has withdrawn 15 per cent duty while Vietnam has slashed down the duty to 5.0 per cent from 15 per cent on export of rod.
"We urged the government to slap 25 per cent import duty and 15 per cent VAT on import of rod to 'rationalise' the tariff structure so that the local factories could surviving," Bashir added.
Sheikh Masudul Alam Masud, general secretary of Bangladesh Re-rolling Mills Association, said local steel factories have been meeting the domestic demand for long and there will be no shortage of such products in future.
"We are self sufficient in producing rod, there is no need for import of steel for buildings," Masud added.
They also urged the government not to make downward adjustment of existing tariff on import of plates needed for ship-building.
"We are capable of producing international standard plates needed for ship building and we have been supplying these since inception of the industry in the country. There is no need for tariff cut for import of plates," Bashir added.
Rod producers reiterated their demand for scrapping the PSI system claiming their import cost often rose due to the existence of the PSI companies.
"Our one fellow manufacturer recently incurred losses worth over Tk 50 million due the negligence of Bureau Veritus. The local company got sand and concrete instead of melting scraps," Masud added.
MS rod producers demanded reduction in the tariff on import of steel producing chemicals.
Bangladesh has over 100 re-rolling mills mainly in Narayanganj, Dhaka and Chittagong.
Country's local demand for rod stands at around 2.0 million tonnes with the construction sector constituting 10 per cent of the country's $70 billion dollars economy, growing at around 8.0 per cent a year.
Rod manufacturers including Md Serajul Islam Mridha, Md Shajahan, Md Jahirul Islam, Md Serajul Islam, Md Saifur Rahman Khokan, Md Mosleh Uddin, Ramiz Uddin Khan and Abu Bakar were present at the press conference.