Domestic makers of essential building materials call for unburdening them of the overweight of multiple taxes to help them sustain the fallout of the pandemic.
They say a spike in raw material prices and freight charges globally is posing serious challenges to them as well as the overall national economy.
The construction material manufacturers made the observations at a pre-budget meeting with the National Board of Revenue (NBR) on Wednesday.
They suggested lowering taxes as several hundred other sectors are affected by the rising costs of building materials.
The meeting was hosted by the NBR at its Segunbagicha headquarters ahead of the framing of the national budget for the fiscal year 2022-23.
Representatives from 24 trade bodies of rod, cement, tiles and brick makers joined the parley, presided over by NBR chairman Abu Hena Md Rahmatul Muneem.
Presenting a budget proposal, Bangladesh Steel Manufacturers Association (BSMA) president Manwar Hossain says the sector is going through a tough time amid a surge in raw material prices globally.
"There could be a domino effect on the economy unless the NBR intervenes to stabilise the market since many sectors are linked with them," he adds.
The BSMA proposed lowering VAT on per-tonne billet made from meltable scraps and mild steel (MS) goods prepared from billet to Tk 500 from existing Tk 2,000 each.
It also sought to lessen tax deducted at source (TDS) at sales to 1.0 per cent from the existing 2.0 per cent.
Bangladesh Cement Manufacturers Association's first vice-president Shahidullah calls for lowering advance income tax on raw materials like limestone, slag, fly ash and gypsum to 0.5 per cent from 3.0-per cent.
His association also requested to reduce import duty on per-tonne clinker, the main raw material of cement, to Tk 200 from Tk 500.
In his speech, NBR chief Mr Muneem says the government cannot take the liability of price spiral in the global market.
"The country cannot become bankrupt offering massive tax reduction," he adds.
He, however, says construction materials are a highly crucial part of the economy as they contribute to money circulation and employment generation.
Replying to a plea from some importers of building materials, Mr Muneem suggests that Bangladesh boost local manufacturing as the country is graduating to a developing one.
"The government has to safeguard consumer rights and encourage local manufacturing through policy support."
Real Estate and Housing Association of Bangladesh leaders suggest extending the scope to invest undisclosed money in the sector for five to 10 more years.
NBR members Zakia Sultana and Md Shamsuddin Ahmed, among other officials, were also present.
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