Amending income tax law to protect the steel industry | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Friday
July 11, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
FRIDAY, JULY 11, 2025
Amending income tax law to protect the steel industry

Thoughts

Shahriar Jahan Rahat
29 May, 2023, 12:00 pm
Last modified: 29 May, 2023, 12:32 pm

Related News

  • Tripura HC disposes PIL seeking action on cross-border infiltration from Bangladesh, Myanmar
  • 35% tariff: Commerce adviser meets US trade representative in Washington
  • NBR first secretary Tanzina suspended
  • Economist Abul Barkat arrested in graft case
  • No need to worry as US tariff talks ongoing: Fouzul tells biz leaders

Amending income tax law to protect the steel industry

It is necessary to make the source tax Tk200 per tonne in the case of scrap imports, withdraw the source tax on the sale of rods, abolish the provision of minimum tax at source at the import level, and adjust the additional tax paid in a year with the next fiscal year’s income tax

Shahriar Jahan Rahat
29 May, 2023, 12:00 pm
Last modified: 29 May, 2023, 12:32 pm
Shahriar Jahan Rahat, deputy managing director, KSRM.
Shahriar Jahan Rahat, deputy managing director, KSRM.

It is necessary to make some changes to the income tax law for the sake of business management and continuity of the steel sector, as traders are constantly facing various problems, including global inflation.

Thousands of crores of investment of traders are at risk if the law is not amended. We want cooperation and sincerity of the relevant ministries of the current business-friendly government, which will help traders to keep their investment safe. It will save a lot of foreign currency, and the steel sector will have a great impact on the overall economy of the country.

There is a provision to deduct 2% source tax on sale of rods, and Tk500 source tax per tonne on import of scrap, which are included in the minimum tax. In this system, the source tax exceeds the income tax payable for a business in a fiscal year. The excess amount of tax paid as per law in a year cannot be adjusted with the tax payable in the next fiscal year. Consequently, every year traders have to pay more tax than they actually should, which is not desirable in any way.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Therefore, it is necessary to make the source tax Tk200 per tonne in the case of scrap imports, withdraw the source tax on the sale of rods, abolish the provision of minimum tax at source at the import level, and adjust the additional tax paid in a year with the next fiscal year's income tax.

According to the law, steel factories have to pay 0.6% minimum tax (turnover tax) on the sale of goods, whether they make profit or not. This exceeds the income tax payable. However, there is a provision to pay income tax only on income. Hence, turnover tax on sales of steel industry can be reduced to 0.2%.

Besides, as per Section-56 of the Income Tax Act, 7.5% source tax is deducted when Bangladesh flagged ships pay fuel price to foreign sellers. However, in the case of buying fuel from domestic suppliers, the source tax is 0.6%. For this reason, foreign companies are not interested in selling fuel at prevailing prices to our ships. They sell fuel to us at a 7.5% increased price.

In this situation, we are forced to buy fuel at an increased price, which increases the cost of managing shipping businesses. If this continues, it will become difficult to manage the business. Therefore, all payments to foreign sellers for things purchased by Bangladesh flagged vessels should be exempted from source tax to encourage the earning of foreign currencies.

Moreover, there is a provision of deducting Tk500 source tax per tonne in the case of importing scrap vessels, which is included in minimum tax. This exceeds the income tax payable by the importing company and there is no scope of adjusting it with the taxes payable in the next fiscal year.

Therefore, in case of importing scrap vessels, it is necessary to make the source tax Tk200 per tonne, withdraw the provision of minimum tax, and allow an adjustment of the additional tax paid in a fiscal year to the next fiscal year's income tax in order to save traders from incurring any financial loss.

This will create a business-friendly environment and traders will be interested in more investments, resulting in a creation of new jobs.

Top News

steel industry / Bangladesh / Income tax law

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • How tender rules and a lone bidder stall a $2.5b power plant
    How tender rules and a lone bidder stall a $2.5b power plant
  • Bangladesh and US hold tariff talks for second day on 9July 2025. Photo: CA Press Wing
    35% tariff: Bangladesh, US 'reach general consensus on some issues' on second day of talks; final round today
  • BNP senior leader Salahuddin Ahmed. Photo: Collected
    No scope for electoral alliance with Jamaat, door not closed for NCP: BNP's Salahuddin

MOST VIEWED

  • Photo: Mohammad Minhaj Uddin/TBS
    SSC, equivalent results: Pass rate drops to 68.45%, GPA-5 also declines
  • In terms of stream of education, girls maintained their excellence as well. Photo: TBS
    SSC 2025: Girls dominate boys by over 5%
  • Govt vehicle purchase, foreign trip, new building construction banned: Finance ministry
    Govt vehicle purchase, foreign trip, new building construction banned: Finance ministry
  • Students sit for SSC exam at Motijheel Girls' High School on 10 April 2025. Photo: Mehedi Hasan/TBS
    SSC exam results out: Here's how you can check online and via SMS
  • The overall pass rate across all boards this year, 68.45%, is significantly lower than last year's. Photo: Focus Bangla
    SSC 2025: Rajshahi board records highest pass rate, Barishal lowest
  • Representational image. Photo: Collected
    35% tariff: Bangladesh, US 'agree on most issues' as first day of talks ends

Related News

  • Tripura HC disposes PIL seeking action on cross-border infiltration from Bangladesh, Myanmar
  • 35% tariff: Commerce adviser meets US trade representative in Washington
  • NBR first secretary Tanzina suspended
  • Economist Abul Barkat arrested in graft case
  • No need to worry as US tariff talks ongoing: Fouzul tells biz leaders

Features

Photo: Collected/BBC

What Hitler’s tariff policy misfire can teach the modern world

16h | The Big Picture
Illustration: TBS

Behind closed doors: Why women in Bangladesh stay in abusive marriages

19h | Panorama
Purbachl’s 144-acre Sal forest is an essential part of the area’s biodiversity. Within it, 128 species of plants and 74 species of animals — many of them endangered — have been identified. Photo: Syed Zakir Hossain/TBS

A forest saved: Inside the restoration of Purbachal's last Sal grove

20h | Panorama
Photo: Rajib Dhar/TBS

11 July 2024: Riot vehicles, water cannons hit the streets as police crack down on protesters

12h | Panorama

More Videos from TBS

'Hypocrisy' will not continue, Iran tells IAEA

'Hypocrisy' will not continue, Iran tells IAEA

15h | TBS World
OpenAI to release web browser in challenge to Google Chrome

OpenAI to release web browser in challenge to Google Chrome

15h | TBS World
Will the title 'Honorable and Excellency' be abolished?

Will the title 'Honorable and Excellency' be abolished?

16h | TBS Today
July Declaration must be constitutionally recognized: Akhtar Hossain

July Declaration must be constitutionally recognized: Akhtar Hossain

16h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net