NBR cuts CI sheet tariff value by 10pc

The National Board of Revenue (NBR) has cut tariff value of CI (corrugated iron) sheets by 10 per cent in a bid to lower the prices of the item largely used by rural people.
The Value Added Tax (VAT) wing under the NBR issued an order Wednesday by slashing tariff value of the product. The VAT wing would collect VAT at 15 per cent rate on the value.
 Under the VAT law, the government is empowered to fix tariff value for some items for collection of VAT at an applicable rate on the value.
The NBR cut the tax within 82 days of the hike in taxes on the item on June 5, 2014 in the budget for fiscal year 2014-15.  
The reduced rates of taxes would be imposed on manufacturing, production and supply stages of the product in the local market.
A senior Vat official said prices of the CI sheets would be reduced by 10 per cent with the cut in the taxes.
The order came into effect from Wednesday, he added.
In the budget for the current fiscal year, the NBR increased tariff value by 10 per cent on the product that has been cut to the previous level in FY 2013-14, he said.
In the order, First Secretary (VAT policy) Md Sawkat Hossain gave details of revised tax structure for five categories of CI sheets.
Tariff value for each ton of CR coil that would be produced from HR coil has been revised downward to Tk 7,500. Tariff value would be Tk 6,000 per ton for production of GP sheet from CR coil.
Tariff value on production of CR coil to CI sheet would be Tk 6,375 while HR coil to GP sheet Tk 13,500 and HR coil to CI sheet Tk 13,875.
Local industries have been demanding minimising of the gap in duty structure between imported and locally manufactured CI sheets. Following the price hike of rural and semi-urban housing material, the government re-introduced the previous rates of taxes.
Sheikh Abul Hasan, Executive Director of Appollo Ispat Complex Limited, said prices of CI sheet would be within the reach of people due to cut in tariff. "The country is totally dependent on locally produced CI sheets. Some illegal imports through mis-declaration cause uneven competition for the local industries," he added.
"CI sheet is being used for various purposes including industrial fencing in rural and semi-urban areas," he said.
Annual demand for CI sheets is around 0.5 to 0.6 million tonnes in the country, he added.