Additional 10 percent supplementary duty (SD) on stone import is affecting the ready-mix concrete industry.
Due to the additional duty, the cost in importing stones has been increased by 300-350 taka per ton, resulting in an increase in the price of ready-mix concrete by about 25-30 taka per cubic foot.
Some companies are using low-quality products without increasing the price which mounts risk in the infrastructure sector, industry insiders said, wishing to be unnamed.
However, Bangladesh Ready-Mix Concrete Association (BRMCA) has demanded the withdrawal of the supplementary duty imposed on stone imports for the construction of quality infrastructure.
At present, the country’s construction is dependent on ready-mix concrete as manufactures prioritize it over other materials because of its environmentally friendly, time-saving and sustainability.
Investment in this sector, which started commercially in 1990, has increased several times in a short time due to a rise in the market demand. Some 22 companies are running their business in the sector.
The strength of concrete depends on the quality of design, cement, stone, sand and water. If these are not in good condition, the strength of concrete decreases significantly.
Industry stakeholders say that after the ouster of Sheikh Hasina on August 5, the construction of most infrastructure development projects, including mega projects, has come to a standstill. At the same time, there has been stagnation in the commercial and private housing industry. It has led to a collapse in the ready-mix concrete sector.
Amidst the hazardous situation, the government increased the value added tax (VAT) on over 100 products. The cost of ready-mix concrete production has also increased due to the increase in the cost of stone import.
Entrepreneurs in the sector said that due to the ongoing instability in the country, the number of construction work in the housing and infrastructure sector has already decreased significantly. Due to which the ready-mix concrete sector is facing losses.
In order to survive, many have kept their business running by compromising on quality without increasing the price. Risks are being created in the infrastructure built using low-quality products.
In this regard, BRMCA Secretary Suvrajit Das Gupta said: “The imposition of 10 percent supplementary duty on stone imports has increased the costs of ready-mix concrete companies.”
“This has already had a negative impact on business and trade.”
He informed that multiple applications have been placed to National Board of Revenue (NBR) to lift the supplementary duty in the sector.
However, the BRMCA secretary is hopeful for a positive response from the NBR.
Translated by Afsar Munna
