Cement manufacturers have urged the government to withdraw the 5 percent advance tax on raw material imports proposed in the new budget.
The introduction of the advance tax on imported raw materials will push up operational costs, said Bangladesh Cement Manufacturers Association President Alamgir Kabir.
This will also affect the working capital – the fund used in day-to-day trading operations – as the raw materials of local cement sector is completely import-based, he said at a press conference in the capital on Monday.
Alamgir expressed concern that they might have to count huge loss.
In the proposed budget for FY2019-20, the finance minister imposed 5 percent advance tax along with 15 percent value added tax (VAT) on import of raw materials.
Entrepreneurs of domestic market-oriented industries have since demanded dropping it.
“Only 15 percent VAT is applicable on the distribution level of cement-made goods,” said Alamgir, adding: “With the imposition of advance tax, entrepreneurs will have to take bank loans at the beginning of the year, which might not entirely be adjusted later.”