The Bangladesh Cement Manufacturers Association (BCMA) has urged National Board of Revenue (NBR) to revise several taxes and duties in the proposed national budget for 2026-27 fiscal year, arguing that such measures are essential for the sector’s sustainability and competitiveness.
In a letter submitted to NBR chairman on Sunday, BCMA stated that the cement industry, a vital contributor to national infrastructure development, is currently facing mounting challenges due to rising production costs, high taxation, and a persistent cash flow crisis.
The letter, signed by BCMA President Mohammed Amirul Haque, outlined strategic proposals intended to reduce the financial burden on manufacturers. A primary request is to fix the customs duty on clinker, the principal raw material for cement, at Tk500 per metric tonne.
The association noted that clinker is currently subject to a 15 per cent customs duty based on assessable value (AV), which it described as significantly higher than the duty structures applicable to many other industries.
The association also called for a reduction in Advance Income Tax (AIT), proposing a maximum rate of 0.50 per cent at both the import and sales stages. The BCMA stated that the current rates, 2 to 4 per cent at imports and an additional 2 per cent at the sales stage, are creating severe liquidity constraints for manufacturers.
The BCMA urged NBR to calculate customs duties based on the actual invoice value of imported materials. It noted that duties on raw materials such as clinker, slag, limestone, fly ash, and gypsum are currently assessed using values considerably higher than their actual import prices.
Other key demands include the complete withdrawal of the 10 per cent supplementary duty (SD) on limestone and the introduction of a tariff-based Value Added Tax (VAT) system.
The association argued that a uniform tariff-based VAT structure would ensure equal treatment for all manufacturers, eliminate disparities, and potentially improve overall revenue collection.
The BCMA expressed hope that these proposed reforms would enhance the competitiveness of the domestic industry, enabling it to make a greater contribution to the infrastructure and economic development of Bangladesh.
