Demand to lift duty on MS rod raw parts
Leaders of the trade bodies of rod and steel industries have demanded of the government to withdraw duty on the import of raw materials for producing mild steel (MS) rods.
Blaming the continued price hike of raw materials for the industry's recent 'dull business', they voiced their demand at a press conference in Dhaka yesterday.
They also demanded tariff reduction to save the industry.
“Government's continued inaction to reduce tariff could further deteriorate the already worsening business condition in the sector,” said Sheikh Masadul Alam, general secretary of Bangladesh Re-rolling Mills Association.
“Withdrawal of duty free access of imported raw materials and increased tariff caused continued price hike of the MS rod and steels,” he added.
In 2005 the government withdrew the zero tariff facility for importing such raw materials and imposed a 5 percent duty on the imports.
Ali Hossen, chairman of Bangladesh Re Rolling Mills Association, and Mizanur Rahman Babul, chairman of Bangladesh Steel Mill Owners Association, were also present at the press conference.
The association leaders also demanded quick solution to the erratic power supply and withdrawal of taxes on generators.
According to the industry insiders, the price of raw materials for manufacturing rod and steel increased to US$500 from US$ 250 a tonne over the last two years. In addition, the government almost doubled the taxes on the imports of these raw materials in recent years.
They said the industry, which meets the local demand for about 5 million tonnes of rod per annum, is faced with numerous problems that include rising prices of imported steel owing to rising global steel prices, as well as irregular power supply.
Industry expert estimates the total size of the industry at around Tk50 billion.
Ship breaking industry is the main source of raw materials for the steel industry, since Bangladesh does not have a local source of iron ore.
Comments