National Budget FY24-25 offers no direct incentive for the cement sector

Bangladesh’s National Budget for FY24-25 was presented by Abul Hassan Mahmood Ali, Minister of Finance, in parliament on 6 June 2024. A cursory look at budget documents reveals no direct tax measures/proposals for the cement sector, which encounters financial challenges due to the high cost of raw materials. However, some indirect tax proposals may positively impact the cement industry. The corporate tax rate, including unlisted cement firms, was lowered by 2.5 percentage points.

While formulating this year’s budget, the finance minister emphasised the pressure of inflation, the adequate allocation of education and health services for all, food security, building smart Bangladesh, facilitation of the business process, climate change, and expansion of investment and industry by encouraging private enterprises. Apart from this, special priority has been given to important issues like ensuring youth employment by promoting vocational education and protecting the population lacking social security.

The documents/speech add that a five per cent import duty has been imposed on various types of components used in the construction of prefabricated buildings. As many of the articles can be procured locally, the finance minister proposes to increase the import duty to 10 per cent.