Bangladesh Minister for Finance, AHM Mustafa Kamal, presented National Budget Speech 2023-24 (July-June) in parliament on 1 June and made some tax measures on the cement industry. The measures are detrimental to the cement industry as they will raise the import cost of clinker and the price of cement bags in Bangladesh, according to local experts.
Increase duty on clinker imports
The minister proposed that the specific duty of only BDT500/t (US$4.66/t) currently in force for importing cement clinkers for the last 10 years would be increased. At present, the country is self-sufficient in cement production. Therefore, to rationalise the customs duty and increase the revenue, he proposed increasing the specific duty rate on cement clinker from BDT500/t to BDT700/t. In addition, Mr Kamal proposed increasing the specific duty rate from BDT750/t to BDT950/t for commercial importers.
State-owned industry
The minister said a research programme titled “Identification of the Number of Sick Industries and the Causes of Weakness” has been initiated in 38 state-owned enterprises. There is also an initiative to transform the production method of the Chattak Cement Factory from wet- to dry process, using energy-efficient, eco-friendly and cutting-edge technology.
Local reaction
The Bangladesh Cement Manufacturers Association is yet to share its reaction to the budget. The officials of the Real Estate and Housing Association of Bangladesh (REHAB), in their initial response, said the housing would become costlier as government imposes new taxes. The proposed FY23-24 budget includes an increase in the land registration tax at source, while import duties on lifts and cement clinkers will also increase.
