The cement industry in Bangladesh is seeking relief from high duties and taxes imposed on the sector, which is impacting the affordability of this crucial construction material for customers. The Finance Bill-2023 proposes an increase in customs duty on clinker imports, contrary to the industry’s request for a reduction. The Bangladesh Cement Manufacturers Association (BCMA) President highlighted that a duty of Tk700 per tonne represents a 12%-13% burden, exceeding the general limit of 5% for such a vital commodity.
The industry is also burdened by non-adjustable advanced income tax (AIT) at two stages of the production process, energy crises, high transportation costs, currency appreciation, and challenges in opening letters of credit. These factors not only weaken the cement industry but may also adversely affect consumers and slow down overall construction. The BCMA is urging for a decrease in clinker duty, a maximum AIT of 0.5%, and adjustments to AIT for non-profitable companies. Additionally, a 15% cash incentive on cement exports would promote exports and alleviate the impact of the dollar shortage and cash requirements during imports.
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