Stress on tax reforms to boost investment in cement sector
Jannatul Islam
19th May, 2021 10:23:10
The government should reform the tax structure to boost investment in the cement sector as local manufacturers are burdened with taxes.
Some 37 companies including 5 foreign manufacturers are producing nine million tonnes of cement in Bangladesh against the annual domestic demand for 4 million tonnes, according to Bangladesh Cement Manufacturers Association (BCMA).
The cement manufacturers are now paying Tk 500 for importing each tonne of clinker, the main raw material for cement. Besides, 5 per cent customs duty and 3 per cent advance income tax put a huge burden on businesses to make new investments, BCMA leaders have said.
Construction costs burdened with cement price rise
Construction costs have been rising since March with each 50-kilogramme bag of cement now costing around Tk 50 more to sell for anywhere between Tk 450 and Tk 460. Photo: SK Enamul Haq
The price of each 50-kilogramme bag of cement has increased by around 12 per cent, or Tk 50, to Tk 450 to Tk 460 a development that will push up construction costs, be it the government s development projects or privately-owned buildings.
The price increased in mid-March as a knock-on effect from a rise in prices of clinker, the main raw material, in the international market alongside that of shipping costs.
Global price-hike in raw material hits local cement market
News Desk | banglanews24.com
Price hike of clinker, the main raw material for cement production, in the international market has affected the cement prices in the local market.
Besides, increasing cost of freight on board (FOB) and cost & freight (CFR) fueled the cement price in Bangladesh.
According to sector insiders, as the production of cement fully depends on the import of raw materials, rising price of raw materials in the global market is forcing the local manufacturers to increase cement price.
Clinker is one of the main raw materials for making cement. The cost of imported clinker has soared to $54 per tonne from $42. In other words, the cost of importing per tonne of clinker has increased by $12.
Bangladesh cement producers seek extension to loan moratorium 30 December 2020
Cement makers in Bangladesh have pleaded for a loan moratorium until the end of June 2021. If extended, the industry, as well as the economy, could strongly recover from the pandemic s fallout, said the letter dated December 22 from the Bangladesh Cement Manufacturers Association (BCMA) to the Bangladesh Bank (BB).
The request to extend the ongoing moratorium period on the payment of loan instalments by another six months would cushion the cement producers as they fight the economic fallout of the pandemic. Global economies are passing through recession due to the unprecedented impacts of the pandemic and Bangladesh s economy is also hit hard. But we do not know when it will be over, said the letter signed by MD Alamgir Kabir, president of the Bangladesh Cement Manufacturers Association (BCMA).
After a trying year, cement makers bracing for slow recovery
With the year about to come to a close, the cement sector finally experienced some relief from the ongoing pandemic thanks to increased consumption alongside fresh investments.
Makers of the key construction material have been in a tight spot since the Covid-19 outbreak began as almost all major development projects in the country, both public and private, were halted for an extended period. The cement sector managed to survive even though the manufacturers sat idle throughout April-September, Mohammed Amirul Haque, managing director of Premier Cement, told The Daily Star.
But now, there are various projects to work on, including mega projects such as the Karnaphuli Tunnel.