Iron and Steel Sector Urges Interim Govt to Ease Import Tariffs

The National Board of Revenue (NBR) reduced the value-added tax (VAT) on soybean oil imports from 10% to 5% effective until December 15, as stated in a circular on November 20. This measure aims to stabilize edible oil prices in the local market. Previously, on October 17, the NBR had granted a 15% tax exemption on local production and a 5% exemption on the supply of refined and unrefined soybean and palm oil.

Bangladesh's steelmakers have presented a five-point demand to the interim government to alleviate challenges plaguing the industry. At a press briefing on November 18, the Bangladesh Steel Manufacturers Association (BSMA) urged for expedited infrastructure projects to mitigate the economic crisis affecting businesses.

GPH Ispat, a major Bangladeshi steelmaker, achieved a profit of Tk 6.59 crore in the first quarter of the current financial year, recovering from a Tk 16.46 crore loss in the same period last year. The earnings per share (EPS) improved to Tk 0.14 from a loss per share of Tk 0.34, driven by an 82.57% reduction in exchange losses on foreign currency transactions.

Bangladesh is losing $355 million in tax annually due to corporate profit shifting and tax abuses by wealthy individuals, according to the State of Tax Justice 2024 report published on November 19. Of the total, $335.9 million is lost through profit shifting by multinational corporations, which moved $1.3 billion out of the country—equivalent to 0.1% of Bangladesh's $460 billion economy.

The Large Taxpayers Unit (LTU) recorded a 12.14% rise in revenue collection during July-September of FY2024-25 compared to the same period in FY24, reaching Tk 63.01 billion. This growth contrasts with a 6.07% decline in overall tax collection by the National Board of Revenue (NBR). Strong monitoring and proactive measures by the LTU, such as one-on-one meetings with 100 corporate taxpayers, ensured compliance.

The National Board of Revenue (NBR) is facing a significant revenue shortfall, with a Tk 307.67 billion (Tk 30,767 crore) deficit by October, missing its July-October target of Tk 1321.12 billion (Tk 1,32,112 crore) for FY24-25. Income tax showed the largest gap, collecting Tk 324.89 billion (Tk 32,489 crore) against a Tk 452.42 billion (Tk 45,242 crore) target. Import duty and VAT also fell short by Tk 69.12 billion (Tk 6,912 crore) and Tk 111.02 billion (Tk 11,102 crore), respectively.