BSRM urges removal of duty anomaly imposed on billets, rods
FE Report | Friday, 13 June 2008
BSRM Group, an industrial conglomerate has urged the government to remove the duty anomaly imposed on billets and rods as proposed in the budget for 2008-09.
"The duty on billets, if applied on ad-valorem would be approximately Tk 5500 per tonne from the present level of Tk 1000," a BSRM letter submitted to the National Board of Revenue (NBR) said.
The letter said the imposition of 7.0 per advalorem duty on billets and rods will be a blow to their new billets-based project set up at a cost of Tk 3.7 billion.
"The net prices of billets via scrap route would be Tk 10,000 per ton lesser than our imported billets prices," the letter signed by the chairman of the company added.
It said if the duty anomaly is not removed, huge quantity of rods will be imported into the country at a cost of huge foreign exchange.
"The proposed duty anomaly will also hit the local industry affecting the investment and employment generation," the BSRM said.
The BSRM Group contributed Tk 2.42 billion to the national exchequer as value added tax, customs duty, power bill, gas bill and income tax between the period of 2003 to 2007.
Of them, the Group paid Tk 50.82 million as VAT in 2007, Tk 184.68 million customs duty, Tk 206.26 million power bill, Tk 27.15 million gas bill and Tk 83.82 million income tax.
The BSRM Group of Companies consists of BSRM Steels Ltd, Bangladesh Steel Re-Rolling Mills Ltd, Meghna Engineering Works Ltd, BSRM Wires Ltd, BSRM Iron and Steel Company Ltd, Karnaphuly Engineering Works Ltd and H Akberali & Co Ltd.
"The duty on billets, if applied on ad-valorem would be approximately Tk 5500 per tonne from the present level of Tk 1000," a BSRM letter submitted to the National Board of Revenue (NBR) said.
The letter said the imposition of 7.0 per advalorem duty on billets and rods will be a blow to their new billets-based project set up at a cost of Tk 3.7 billion.
"The net prices of billets via scrap route would be Tk 10,000 per ton lesser than our imported billets prices," the letter signed by the chairman of the company added.
It said if the duty anomaly is not removed, huge quantity of rods will be imported into the country at a cost of huge foreign exchange.
"The proposed duty anomaly will also hit the local industry affecting the investment and employment generation," the BSRM said.
The BSRM Group contributed Tk 2.42 billion to the national exchequer as value added tax, customs duty, power bill, gas bill and income tax between the period of 2003 to 2007.
Of them, the Group paid Tk 50.82 million as VAT in 2007, Tk 184.68 million customs duty, Tk 206.26 million power bill, Tk 27.15 million gas bill and Tk 83.82 million income tax.
The BSRM Group of Companies consists of BSRM Steels Ltd, Bangladesh Steel Re-Rolling Mills Ltd, Meghna Engineering Works Ltd, BSRM Wires Ltd, BSRM Iron and Steel Company Ltd, Karnaphuly Engineering Works Ltd and H Akberali & Co Ltd.