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BCMEA seeks 5 per cent flat duty on inputs

BCMEA seeks 5 per cent flat duty on inputs
Photo: Collected
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The Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) has called for a 5 per cent flat customs duty on key raw materials and chemicals in the upcoming FY27 national budget.

The proposal letter, submitted to the National Board of Revenue (NBR) recently, said a uniform duty structure would lower production costs and improve competitiveness in the ceramic sector.

The trade body said products such as lavatory seats and flushing mechanisms now face a combined tax burden of 48 per cent, including 25 per cent customs duty, 3 per cent regulatory duty and 20 per cent supplementary duty.

It proposed replacing the multi-layered structure with a single 5 per cent duty rate.

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Raw materials including talc, calcium carbonate and ceramic fibre currently face 10 per cent customs duty, which the association wants reduced to 5 per cent.

Higher-duty items such as cover coats, now taxed at 15 per cent, would also be brought down to the proposed level.

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The association also urged withdrawal of supplementary duties, including 15 per cent on tiles and 10 per cent on sanitaryware, saying the existing structure raises input costs and weakens local manufacturers.

To support factory operations, it proposed reducing customs duty to 1 per cent on essential spare parts imported with capital machinery.

BCMEA also sought a 35 per cent weight allowance on imported ball clay and China clay, citing moisture content and processing wastage.

It recommended removing the mandatory red mark audit requirement for polishing abrasives during customs clearance to simplify procedures and reduce delays.

The association further called for withdrawal of the 15 per cent export duty on ceramic bricks to improve access to regional markets.

It also proposed changes to income tax rules to remove annual limits on free samples used for marketing and showroom display.

BCMEA said the sector contributed Tk3,500 crore to the national exchequer in FY25, employs more than 54,000 workers, and exports to over 50 countries, highlighting its growing role in manufacturing and trade.

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Muhammad Ibrahim Mojid MI
Muhammad Ibrahim Mojid

Muhammad Ibrahim Mojid is a business reporter at Times of Bangladesh.

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