Steel manufacturers in Bangladesh are urging the government to reduce customs duties, income taxes, and VAT on imported raw materials in the upcoming fiscal budget to support the struggling industry. 

According to the Bangladesh Steel Manufacturers Association (BSMA), current tax policies are placing significant pressure on businesses amid rising costs.

The industry said it has been negatively affected in recent years by currency depreciation, US dollar shortages, higher operating costs, and elevated interest rates, along with global uncertainties and slower infrastructure demand.

The association has proposed several measures, including lower advance income tax on raw material imports, reduced withholding tax on rod sales, and cuts to turnover tax, as well as more flexibility in adjusting previously paid taxes.

The Bangladesh government said it will consider reasonable proposals but emphasized that it cannot accommodate all requests due to fiscal constraints and revenue pressures.