March 29, 2024, 6:08 pm


Staff Correspondent

Published:
2022-01-17 19:20:13 BdST

FBCCI urges PMReset rod import tariff, save construction sector


The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has sought the government’s intervention to save the country’s construction sector.

In a letter on December 27, FBCCI President Md Jashim Uddin sought a tariff cut to keep per ton MS rod prices below Tk 60,000.  

He noted that prices of construction materials like rods, cement, stones, bitumen, copper and aluminium rose by 20-25 percent. 

“To complete the ongoing and upcoming government projects in time, the construction sector needs to import MS rod immediately. The project director concerned will permit to import rod by assessing the demands of the respective projects and design as well,” the letter reads.

FBCCI, as the apex trade body, will approve it and the bank concerned will greenlight the opening of letter of credits for the government projects, said Jashim. 

Currently, importers have to pay about 45 percent duty and tax during MS rod import.  

The letter said the rising construction costs had made it nearly impossible for contractors to pursue their ongoing project works, maintaining standards and completing them promptly.

“Over the last three months, Ispat and cement producing companies have been illogically augmenting the price of their products under syndicates, creating negative impact in construction as well housing industry,” it said.

If this situation persists, most domestic construction companies will be unable to compete with foreign contractors and may go bankrupt. This will push up non-performing loans. 

FBCCI recommended, among others, to allow rod import from any country and fix tariffs and duties to keep the price of each ton below Tk 60,000.

If the project cost increases due to any legal changes after the tender is dropped, the contractor must be compensated for additional expenditure, it said.

Unauthorized use or reproduction of The Finance Today content for commercial purposes is strictly prohibited.


Popular Article from Business