Country's steel and re-rolling millers have placed a set of proposals including imposition of 15 per cent value added tax (VAT) or raise the duty by another Tk 5,500 on import of per tonne of billet in the upcoming budget for fiscal year 2014-15 to help save the local industry.
They also demanded withdrawal of Tk 800 advance income tax (AIT) on all materials, including ferrous waste and scrap, sponge iron and billet production.
Leaders of Bangladesh Auto Re-rolling and Steel Mills Association (BARSMA), Bangladesh Steel Mill Owners' Association (BSMOA) and Bangladesh Re-rolling Mills Association (BRMA) put forward the demands at a press conference at the Dhaka Reporters' Unity in the city Wednesday.
General Secretary of BRMA Md Abu Bakar Siddique read out the demands on behalf of the three organisations. BARSMA president Sheikh Masadul Alam Masud, BSMOA chairman Sheikh Fazlur Rahman Bakul also spoke, among others, on the occasion.
Mr Siddique also demanded withdrawal of VAT and AIT on import of ferro-manganese, ferro-silicon, and ferro silico manganese used in billet production.
He urged the government to fix Tk 500 as duty on import of per tonne coarse powder, graphite powder and graphite electrode and to withdraw the 4.0 per cent additional VAT deducted at source on suppliers of scrap raw materials for billet.
Mr Siddique also demanded withdrawal of 0.5 per cent minimum income tax on steel and re-rolling mills and 0.5 per cent AIT on opening of L/Cs (letters of credit) with local banks.
He called upon the government to take steps for exporting steel products to the seven sisters of India as there is enormous opportunity.
The association leaders also urged the government to fix 25 per cent customs duty, 15 per cent VAT, 0.5 per cent AIT, 0.4 per cent ATV and 0.1 per cent PSI on import of steel related items as the country has sufficient production of such kinds of goods.
Masadul Alam Masud alleged that the government was destroying local industry and helping the billet importers through such discriminatory tax and duty measures.
He said local mills have the capacity to meet domestic demand for billet. "But the government is encouraging billet import instead of protecting local industry."
Mr Masud said 1.5 million street vendors are involved in the industry alongside the owners, workers and others engaged in the sector.
He urged the government for taking immediate steps to develop socio-economic conditions of the country otherwise whole economy would collapse.
Sheikh Fazlur Rahman Bakul alleged that the government increases the VAT every year without considering the business condition. He urged the government to take matter seriously this year as political uncertainty ate up the whole business activities.
