The Bangladesh Steel Manufacturers Association (BSMA) has urged the government to reduce import duties, value-added tax (VAT), and other tariffs in the upcoming national budget. The proposed measures aim to lower the prices of steel products and subsequently decrease construction costs. The BSMA has specifically requested a reduction in VAT on sales from 2% to 1%, as well as lower VAT rates for locally sourced and imported scrap, billet, and mild steel (MS) products.
Additionally, the association suggests reducing customs duties and advance income tax. The steel industry in Bangladesh has faced numerous challenges since the onset of the COVID-19 pandemic, including limited raw material imports due to difficulties in opening letters of credit amidst the US dollar shortage. The industry is also grappling with high energy costs and the impact of the Russia-Ukraine war, which has caused inflationary pressure and slowed infrastructure development and construction activities. The BSMA emphasizes that these issues jeopardize jobs for around 5 million people employed in related sectors.
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