Construction materials

Contractors seek exemption from import duties on building materials

The contractors requested a temporary exemption from import duties on construction materials, citing excessive price increases for all items, including rod, cement, stone, brick and bitumen.

The Bangladesh Entrepreneurs Association handed over a written list of their demands to Prime Minister’s adviser for private industry and investment Salman F Rahman during a meeting on Sunday at the Bangladesh Investment Development Authority building (BIDA).

In the letter, signed by the association’s secretary general Abdur Razzak and president Rafiqul Islam, they said, the contractors successfully implemented infrastructure projects across the country. However, cane prices have increased by 60% over the past year. Amid the ongoing Russian-Ukrainian war, the prices of all other building materials are also rising at an alarming rate.

Therefore, import duties on raw materials for building materials should be suspended as contractors suffer financially to cope with soaring prices, he added.

They further called on the government to adjust the prices of existing contracts in line with Public Procurement Rules (PPR) and update the tariff schedule for new ones as they are struggling with ongoing projects due to the recent increase in material costs.

In the current global reality, they recommended the allocation of necessary funds under price contingency when estimating costs for each construction project.

We find it difficult to continue ongoing projects and on the other hand, we are unable to bid for new projects, they said.

Hasan Mahmud Babu, director of the Bangladesh Association of Construction Industries (BACI), told The Business Standard: “We have presented our demands. [Salman F Rahman] assured us that he will take the demands to senior government officials. »

He also asked all entrepreneurs to be members of Baki, added Hasan Mahmud.

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