The Bangladesh Cement Manufacturers Association has formally urged the National Board of Revenue to implement significant tax cuts in the upcoming budget to help local producers navigate a challenging economic landscape. To lower production costs, the association proposed replacing the current 15 per cent customs duty on clinker with a flat rate of BDT500/t (US$40.65/t)and reducing duties on machinery spare parts from 25 per cent to just one per cent.
Further proposals include slashing the advance income tax on essential raw materials to a uniform 0.50 per cent and halving the advance tax on imports to one per cent. The industry body also called for the total removal of the 10 per cent supplementary duty on limestone, arguing that these cumulative changes would make cement more affordable for the construction sector.
President Mohammed Amirul Haque noted that despite a massive installed capacity of 100Mt, the industry saw utilisation drop to 40Mt in 2025. With factories running at less than half their effective capacity due to high interest rates and global economic shocks, the association maintains that tax rationalisation is now a necessity for the sector's survival.
By Abdul Rab Siddiqi, Pakistan
