The country's green concrete block manufacturers have been facing difficulties, as they have to pay much higher tax compared to that of traditional clay-brick makers, stakeholders have said.
Besides, comparatively lower scheduled rates of concrete blocks, ambiguity in the definition of environment-friendly blocks in a tax-related circular, and complications to get customs clearance for machine parts, especially pallets, are holding back their desired growth, they added.
They said that such bottlenecks are impeding implementation of the government's endeavour to popularise the environment-friendly concrete blocks to save the environment and protect agrarian land.
Currently, around 300 block-manufacturing companies - large and small - are operating in the country while the number is growing on the back of the government's move to completely phase out clay-burnt brick in public works by 2025.
However, some incongruities in the relevant policies might deter the eco-friendly concrete block makers and achieve the government's goal.
In this regard, a platform of the block makers has recently written to Environment, Forest and Climate Change Minister Saber Hossain Chowdhury, seeking urgent initiative to implement the government plan.
The government has issued clear directives to increase the use of different types of concrete blocks gradually instead of clay bricks, Bangladesh Concrete Blocks & Pavers Manufacturer Society (BCBPMS) said in the letter.
"It has been a matter of serious regret that 10 per cent of implementation - in line with the government's directives - has not been accomplished yet to save the agrarian land, whereas there is government instruction to enhance the use of concrete blocks to 80 per cent by the fiscal year 2024," the trade body said in the letter.
Highlighting on the harmful impact of long-established brick kilns and benefits of concrete blocks, the BCBPMS urged the government to take some immediate measures.
"Despite existing laws, notifications and various guidelines, the sustainability of environment-friendly factories is now threatened since there is no pragmatic implementation of them," it said.
It also said a value added tax (VAT) related circular exempted tax on 'hollow concrete blocks' despite all concrete blocks - solid or having holes - are environment-friendly. Due to the ambiguity, the same manufacturers have to pay taxes for solid concrete blocks.
Apart from this, a block manufacturing company has to pay a VAT of Tk 6.0-8.0 million at source and Advance Income Tax, among others. In contrast, traditional brick makers pay around Tk 0.5 million in a year, the BCBPMS claimed in the letter.
The trade body also urged the government to provide a duty-free facility to block-making machinery imports for the next five years.
Contacted, the BCBPMS President Lt Colonel (retired) Shakawat Hossain said many operators face harassment while obtaining the customs clearance of machinery specially block production palettes.
"Though the Chittagong University of Engineering and Technology (CUET) has given clearance certificate in this regard, customs authorities procrastinate in the procedure and force the importer to pay different types of additional charges," he said.
Mr Hossain also said the prices of concrete blocks were not increased in the revised rates of schedule prepared by the Public Works Department in 2023, albeit the clay-bricks witnessed over 30 per cent increase than that of the previous year.
The scheduled rate of brick is Tk 13 per piece at present.
In contrast, the price of a solid concrete block - which is equivalent to five traditional bricks in size-have been fixed at only Tk 40 per piece, said the BCBPMS president, adding that the rational price of such a block should have been Tk 65.
According to data available with the state-run Housing and Building Research Institute (HBRI), there are around 8,000 operating traditional brick kilns, contributing 1.0 per cent to the country's GDP but destroying 122.5 million metric tonnes of fertile agricultural topsoil.
Contacted, the HBRI's Principal Research Officer Architect Md. Nafizur Rahman said it's a kind of policy paradox as a green building materials maker has to pay higher taxes than their counterpart who play a detrimental role to the environment.
At present there are favorable policies including the green financing scheme, a guideline to manufacture and use environment-friendly blocks, which need stakeholder coordination to reap the benefits of green blocks.
"If the policies are not aligned, new entrepreneurs will not be encouraged to enter the green block manufacturing business despite their necessity for the country ," said Mr Rahman, adding that it would ultimately impede the country's goal to phase out the clay-burnt bricks.
Highlighting on the latest technical development in the sector, Mr Rahman said that previously small and manual operators mostly produced the blocks which sometimes resulted in lower-than-expected quality products spreading wrong messages to consumers.
"Now, the number of compliant and modern factories are on the rise, who must get government's support in the form of tax and other safeguard measures considering their viability and protection of agricultural land," he added.
This is also necessary to encourage the traditional brick kiln operators to convert their units to green block making units, he said, suggesting introduction of carbon tax and special incentive for those who transfer technology to lower carbon emission and cleaner technologies.
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