SHELTER is a basic human need recognised in the present -day world. We achieved independence 35 years back but could not arrange shelter for a huge number of people. In Bangladesh, the poor people in rural areas cannot afford to construct their shelter with bricks, iron rods, cement, sand, wood etc., as they have too limited purchasing power. They try to build their houses with low-cost corrugated iron (CI) sheet and wood. A dozen of CI sheet manufacturing industrial factories have been set up in Bangladesh in the last couple of years. Those have been producing CI sheets to cater to the demand of the people. Those import hot rolled (HR) coils from abroad and produce cold rolled (CR) coils. After galvanising CR coils with zinc, galvanised plain sheet (GP) are produced. The GP sheets are cut in to desired length and corrugated, then those become CI sheets.
A few years back, Bangladesh achieved self-sufficiency in CI sheet. As the price of H R coil has doubled from US$300.00 to US$600.00 per metric ton in the international market, production cost of CR coil has doubled. On the other hand, the main raw material to galvanise CR coil, Zinc has increased more than four times. But the government did not reduce the duty etc., on import of zinc. The cost of production of CI sheet has thus exceeded one hundred thousand Taka per m. ton. If any one reviews the zinc price during last ten years, one will find that its average price, C & F, Chittagong, was US$1, 100.00 per m. ton. On zinc import, government imposed customs and other fees (36%) -- on average US$396.00. That is, per ton zinc's landing cost stood to (1,100.00+396.00) or US$ 1,496.00. The zinc price in international market has been increasing for last two years. In the middle of December '06 per m. ton zinc price, C&F, Chittagong, was US$4, 600.00. Government customs duty, VAT, AIT, DSC, PSI and adjustment on import in total is 36%. Earlier government used to impose US$396.00 tax etc., on one m. ton imported zinc. But it is imposing US$1,656.00 (on the basis of 36%) now.
Bangladesh is an independent country. Government here must make its decisions considering the welfare of her people. We do not see any realistic decision making in case of duty and other levies on zinc. It is high time government should change its rate of customs duty, VAT, and other fees on zinc so that government's income remain US$ 396.00 from every m. ton of imported zinc and people can purchase their required CI sheet to build shelter, which is a human basic need .
We urge the present caretaker government to review the rates of different duties and other levies on zinc import and refix these in such a way so that general people can purchase CI sheets to construct their dreamed homes.
Md. Ashraf Hossain
Sr. Manager,
RM Continuous Galvanising Mills Ltd.
8, Panthapath, Dhaka-1215.
Rates of duty and other levies on zinc need review
FE Team | Published: June 22, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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