Lifted supplementary duty may result in lower prices for limestone
Shining BD Desk || Shining BD
The National Board of Revenue (NBR) has withdrawn the supplementary duty (SD) on import of limestone to ensure low-cost infrastructural development in the country.
Internal Resource Division issued a Statutory Regulatory Order in this regard on Monday, saying that the withdrawal of total SD on limestone will remain effective until further notice.
While importing limestone, the traders currently pay a 30 percent SD.
The country is dependent on imported limestone, used in various sectors including cement, and ceramics industries.
The previous imposition of SD has been soaring the import costs of the cement industry, said sector insiders.
However, to enjoy the facility, importers must follow a number of conditions, said the SRO.
As per the condition, importers must have an updated Import Registration Certificate (IRC) with VAT compliance certificate.
Apart from being an IRC holder, the industry also have to file the previous month's VAT return. Meanwhile, companies established under Bangladesh Export Processing Zone Authority, Bangladesh Economic Zones Authority and Bangladesh Hi-Tech Park Authority can also take advantage of this duty exemption.
Large cement factories use up to 20 percent limestone as raw material. It is known that significant amount of limestone is used in ceramics and tiles industry. In this regard, the official with the cement industry said that withdrawing of SD will reduce the production cost.
According to the NBR-administered tariff schedule, the total tax on limestone imports is 68.80 percent which includes 5 percent import duty, 30 percent supplementary duty, 15 percent VAT, and 5 percent advance tax. It means, if anyone imports limestone worth Tk100, he/she will have to pay about Tk69 in customs duty. The removal of supplementary duty will reduce this burden. From now on, if anyone imports limestone worth Tk100, then he/she will have to pay a duty of Tk33.