Steel millers urge lifting of PSI, VAT
Monday, 25 April 2011
FE Report
Re-rolling and steel millers Sunday urged the government to withdraw value added tax (VAT) on the import of raw materials so that the sector could sustain and flourish. The Bangladesh Auto Re-Rolling and Steel Mills Association (BARRSMA) also urged the government to lift pre-shipment inspection (PSI) on the import of melting scrap and re-rollable scrap. "Our appeal to the government is to withdraw VAT as the sector has been contributing to the development of the country's infrastructure," secretary general of BARRSMA Abul Quasem Mojumber said. The pleas came when a delegation of the association met with the Commerce Minister Muhammad Faruk Khan in the city. He said steel mill owners have been facing problems in producing MS rod due to high bank interest rates ranging from 18 to 20 per cent, which pushes up the costs. He requested the government to take steps to slash interest rates at a 'reasonable' rate. "Otherwise," he feared, "the industry may turn into a sick industry." He said supplementary duty should be slapped on the imported products so that local producers can survive. He also sought the government's intervention so that about 100 closed mills could resume their production. "The government should negotiate with India to facilitate exports of MS rod worth Tk 200 billion to the north-eastern (seven sisters) states of India," he said. The annual production of MS rod is estimated at 3.2 million tonnes while demand is 2.0 million tonnes, leaving a surplus of 1.2 million tonnes. Faruk Khan said the government is considering withdrawal of PSI from all products. "I do believe the PSI should be withdrawn from all items," he said. With regard to high bank interest rates, VAT and budgetary allocations, Faruk Khan said he would discuss with the government on the issues. Chairman of BARRSMA Sheik Masadul Alam Masud and other members of the association were also present.
Re-rolling and steel millers Sunday urged the government to withdraw value added tax (VAT) on the import of raw materials so that the sector could sustain and flourish. The Bangladesh Auto Re-Rolling and Steel Mills Association (BARRSMA) also urged the government to lift pre-shipment inspection (PSI) on the import of melting scrap and re-rollable scrap. "Our appeal to the government is to withdraw VAT as the sector has been contributing to the development of the country's infrastructure," secretary general of BARRSMA Abul Quasem Mojumber said. The pleas came when a delegation of the association met with the Commerce Minister Muhammad Faruk Khan in the city. He said steel mill owners have been facing problems in producing MS rod due to high bank interest rates ranging from 18 to 20 per cent, which pushes up the costs. He requested the government to take steps to slash interest rates at a 'reasonable' rate. "Otherwise," he feared, "the industry may turn into a sick industry." He said supplementary duty should be slapped on the imported products so that local producers can survive. He also sought the government's intervention so that about 100 closed mills could resume their production. "The government should negotiate with India to facilitate exports of MS rod worth Tk 200 billion to the north-eastern (seven sisters) states of India," he said. The annual production of MS rod is estimated at 3.2 million tonnes while demand is 2.0 million tonnes, leaving a surplus of 1.2 million tonnes. Faruk Khan said the government is considering withdrawal of PSI from all products. "I do believe the PSI should be withdrawn from all items," he said. With regard to high bank interest rates, VAT and budgetary allocations, Faruk Khan said he would discuss with the government on the issues. Chairman of BARRSMA Sheik Masadul Alam Masud and other members of the association were also present.