Ceramic makers seek withdrawal of supplementary duty

Country's ceramic makers have demanded the withdrawal of existing supplementary duty and reduction in other taxes on imports of raw materials to help protect the domestic industry from an uneven competition at local and international levels.

Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA) recently placed the demand to the commerce ministry for considering the issues in the budget for the next fiscal year as locally-made ceramic and sanitary ware were facing tough competition with imported ones.

Currently, the government imposes a 15 percent and a 10 percent SD on local tiles and sanitary ware items respectively at the production level.

A gradual increase in gas prices was the main problem facing the industrial sector. An average production cost of per kg ceramic products (in particular items) increased by Tk 7-Tk 10 due to a 120 per cent rise in gas prices last year, industry insiders said.

They also mentioned that the government again increased the gas price by 45 percent. For this, the production cost of these items also increased by Tk 3-Tk 5 per kg.

The SD imposed by the government had been creating pressure on the industry. On the other hand, the sector was struggling to survive due to the spread of the Covid-19, they added.

They suggested reducing the prices of tiles and sanitary ware and increasing the use of these items.

Ceramic makers also proposed withdrawal of source tax on the government-announced 10 percent cash subsidy.

They demanded the withdrawal of regulatory duty and imposition of customs duty on imports of different raw materials.

Besides, they proposed making amendments to several provisions of the existing VAT and Income Tax Act.

Currently, there are 68 ceramic manufacturers in the country with local and foreign investment of about Tk 90 billion.

The domestic market size of ceramic products was around Tk 350 billion in the calendar year 2019, according to the association.

The sector earned US$68.97 million by exporting such products in the fiscal year 2018-19, according to the Export Promotion Bureau.

The manufacturers ship their products to different countries including the UK, USA and Canada as well as those in Europe and Latin America.