Tax on bricks may increase; businessmen fear rise in construction costs

Increasing the tax on bricks was proposed in the national budget today which drew fears of rise in construction costs. 

Finance Minister Abul Hassan Mahmood Ali said in his speech, "I propose to increase the specific tax for non-machine-made normal bricks (non-refractory building bricks), except bricks used in facing, from existing Tk450 (per thousand) to Tk500 (per thousand); for machine- made or mechanically manufactured normal bricks (non-refractory building bricks), except bricks used in facing, from existing Tk500 (per thousand) to Tk600 (per thousand); for machine- made or mechanically manufactured bricks Grade I (with three holes, ten holes, seventeen holes and multi cored bricks) from existing Tk700 (per thousand) to Tk800 (per thousand); for machine- made or mechanically manufactured bricks Grade II (with three holes, ten holes, seventeen holes) from existing Tk700 (per thousand) to Tk800 (per thousand); for bricks chips from existing Tk700 (per 100 CFT) to Tk800 (per 100 CFT) and for Micad Bats from existing Tk500 (per 100 CFT) to Tk600 (per 100 CFT)."

Abu bakker Siddique, former secretary, Bangladesh Brick Manufacturing Owners Association (BBMOA) told The Business Standard, "If the tax is increased, the price of bricks will increase more than the current market price. As it will be effective from the next financial year, the prices of bricks will also increase from then."

Naimul Islam Khan, former executive member, Real Estate & Housing Association of Bangladesh (REHAB) said, "Brick is an essential building material. If the tax on bricks increases, the price of bricks will also increase. Accordingly, the cost of building construction will also increase."