FROM PAGE B1

He thinks that the energy crisis will continue in the coming days and the price of the dollar might increase further. “So, there is a possibility that the price of steel products will rise in the future.”

According to Rahat, there is a provision of paying a 2 per cent source tax on the sales of rods and a Tk 500 per tonne source tax on the import of scrap.

In its budget proposal, the sector had demanded a cut in the advance income tax to Tk 100 per tonne from Tk 500 (non-adjustable), but the government did not pay any heed.

Rahat argued that the additional tax paid is not adjustable in the next financial year. As a result, businesses sometimes end up paying more tax than they owe.

He thinks it is necessary to fix the source tax at Tk 200 per tonne in the case of scrap import, withdraw the source tax on the sales of rods, cancel the provision of the minimum tax at source at the import level, and offer an opportunity to adjust the advance income tax. “In order to sustain the business of the sector, the amendment of laws is necessary.”

In Bangladesh, the steel industry has been facing a difficult situation after a sudden increase in the price of gas and electricity. This has pushed up the energy bills of steel production, sending the price of rods to a record high.

Data from the Trading Corporation of Bangladesh showed that the 60-grade MS (mild-steel) rod has been retailing at Tk 101,500 per tonne since May 15, up from Tk 91,500 a year ago.