The decline of marble industry in Bangladesh

Marble, once a symbol of luxury, no longer holds its esteemed position in Bangladesh's market. Today, the industry is suffering, and customers are facing numerous challenges. The number of suppliers has increased dramatically.

Today, customers do not need to visit the market to choose their marble. When a construction site needs marble or granite, countless vendors bring samples directly to the site. There are so many samples that they could cover a couple of rooms for free. With so many suppliers, customers are forced to haggle over prices, choosing the lowest offer.

Unlike other flooring materials, marble samples can be misleading. A small, attractive piece of marble is easy to provide, even from low-quality slabs. When the actual marble slab arrives at the site, it is usually unpolished, making it hard for customers to see the true colour and quality.

The client hires an installer to cut and polish the slabs. Then comes the surprise! The finished marble often looks very different from the sample. There are colour variations, dark spots, and flaws, making the floor look unpleasant. By this time, it is too late to complain.

Suppliers include a small clause on their invoice stating, "Sample provided is a mere example and being a natural material, shades and colour may vary." This statement, though true, is used unfairly.

The problems do not end there. Over time, homeowners or office residents start noticing cracks in the marble. They have no choice but to live with these defects because replacing the marble is too costly and disruptive.

A significant issue in the industry is that today anyone can import marble and granite blocks at the same tax rates as industrial importers. Traders often import very low-quality blocks and use multiple trade licences to avoid taxes and value-added taxes.

Some factories equipped with poorly functioning processing machines cut these blocks for a small fee without taking into consideration the final output. Factories processing these blocks also do not pay VAT properly.

To survive in this competitive market, many factories are compromising on quality. With huge bank loans, high energy and overhead costs and big tax claims, these factories are struggling because of unfair competition with traders. The result is unhappy customers, struggling factory owners, and lost tax-revenue for the government.

Only factory owners should be allowed to import raw blocks. This would ensure proper tax collection, improve the quality of imported materials, and guarantee better products for customers.

Over time, the government has increased taxes on raw marble and granite blocks but has lowered the import tax on finished marble slabs. This has resulted in lost revenue for the government and difficulties for factory owners. Addressing this issue would help the government increase tax collection and support the industry.

By implementing these measures, the government can restore the marble industry's reputation and ensure sustainable growth for both factory owners and customers. This will lead to happier customers, healthier factories, and better tax revenues for the government.

The author is managing director of Marble Di Carrara (Pvt.) Ltd.