Sidr and CI sheet price
Monday, 10 December 2007
CYCLONE Sidr hit Barisal Division and parts of Khulna and Dhaka divisions last November. Besides a great number of people, thousands of animals, domestic or otherwise, were killed. Tens of thousands of shelters of people were damaged as well. As most of the inhabitants of the affected areas are virtually poor, they cannot even think of pucca residential houses.
They have to reconstruct their shelters with wood, bamboo and corrugated iron (CI) sheets. But the price of CI-sheet has gone sky high for the last one year. The general people cannot afford it. In the international market the main raw materials for CI sheet making -- Hot Rolled Coil (HR Coil) and Zinc Ingot -- have also gone up. Three or four years back, the price of a metric tonne (MT) of H.R. Coil's C&F, Chittagong was, on an average, US$ 350.00. Our government imposed different customs duty, VAT, AIT, DSC, PSI, insurance etc. @ 33%.
That is, the government used to charge US$ 115.50 per M.Tonne. At present, the price of one M.Tonne H.R. Coil's C&F, Chittagong is US$ 650.00. The government imposes customs duty, VAT, AIT, PSI & insurance etc., @ 29%. That is, government is charging now US$ 188.50 per M. Tonne. Similarly three-four years' back, the price of one M.Tonne Zinc Ingot, on the basis of C&F Chittagong, was on an average US$ 1,100.00. Our government imposed 38% customs duty, VAT, DSC, PSI, insurance etc., on Zinc Ingot. That is, government used to charge US$418.00 per M.Tonne. In international market, the price has gone up to US$ 3,500.00 C&F, Chittagong per M.Tonne. The government imposes customs duty, VAT, AIT, PSI & insurance @ 35% now. That is, US$ 1,125.00 per M.Tonne. Owing to high price and higher aggregate government duties, the price of CI sheet produced in Bangladesh in the domestic market is around Tk. 1,00,000.00 (Taka 0.1 million) per M.Tonne, whereas the price, on an average, was Tk. 40,000.00 (Taka forty thousand) four years back. The Sidr-effected Bangladeshis cannot afford such sky-high prices of CI sheets, the main ingredient for constructing low-cost shelter.
We cannot reduce the international high price of HR Coil as well as Zinc Ingot, but our government can adjust aggregate duty, VAT, AIT, PSI etc., reducing the rates. That is, the government can charge the same aggregate duty, VAT, etc. on HR coil and Zinc Ingot as it charged, in aggregate, four years back. More specifically, it can be said that the government can impose, in aggregate, US$ 115.00 per M.Tonne on H.R. Coil and US$ 418.00 per M.Tonne on Zinc Ingot. If these are done, the government will not lose its aggregate revenue as it collected four years back but the price of C.I. sheet will be lower significantly, which will definitely help the Sidr victims of rural Bangladesh.
I urge the government to consider the matter promptly and make a rational decision for the welfare of the people.
Md. Ashraf Hossain
120, Central Bashabo
Dhaka-1214
They have to reconstruct their shelters with wood, bamboo and corrugated iron (CI) sheets. But the price of CI-sheet has gone sky high for the last one year. The general people cannot afford it. In the international market the main raw materials for CI sheet making -- Hot Rolled Coil (HR Coil) and Zinc Ingot -- have also gone up. Three or four years back, the price of a metric tonne (MT) of H.R. Coil's C&F, Chittagong was, on an average, US$ 350.00. Our government imposed different customs duty, VAT, AIT, DSC, PSI, insurance etc. @ 33%.
That is, the government used to charge US$ 115.50 per M.Tonne. At present, the price of one M.Tonne H.R. Coil's C&F, Chittagong is US$ 650.00. The government imposes customs duty, VAT, AIT, PSI & insurance etc., @ 29%. That is, government is charging now US$ 188.50 per M. Tonne. Similarly three-four years' back, the price of one M.Tonne Zinc Ingot, on the basis of C&F Chittagong, was on an average US$ 1,100.00. Our government imposed 38% customs duty, VAT, DSC, PSI, insurance etc., on Zinc Ingot. That is, government used to charge US$418.00 per M.Tonne. In international market, the price has gone up to US$ 3,500.00 C&F, Chittagong per M.Tonne. The government imposes customs duty, VAT, AIT, PSI & insurance @ 35% now. That is, US$ 1,125.00 per M.Tonne. Owing to high price and higher aggregate government duties, the price of CI sheet produced in Bangladesh in the domestic market is around Tk. 1,00,000.00 (Taka 0.1 million) per M.Tonne, whereas the price, on an average, was Tk. 40,000.00 (Taka forty thousand) four years back. The Sidr-effected Bangladeshis cannot afford such sky-high prices of CI sheets, the main ingredient for constructing low-cost shelter.
We cannot reduce the international high price of HR Coil as well as Zinc Ingot, but our government can adjust aggregate duty, VAT, AIT, PSI etc., reducing the rates. That is, the government can charge the same aggregate duty, VAT, etc. on HR coil and Zinc Ingot as it charged, in aggregate, four years back. More specifically, it can be said that the government can impose, in aggregate, US$ 115.00 per M.Tonne on H.R. Coil and US$ 418.00 per M.Tonne on Zinc Ingot. If these are done, the government will not lose its aggregate revenue as it collected four years back but the price of C.I. sheet will be lower significantly, which will definitely help the Sidr victims of rural Bangladesh.
I urge the government to consider the matter promptly and make a rational decision for the welfare of the people.
Md. Ashraf Hossain
120, Central Bashabo
Dhaka-1214