DHAKA, April 27, 2026 (BSS)- Leaders of Bangladesh Steel Manufacturers Association (BSMA) has called for reduction of income tax, customs duty and Value Added Tax (VAT) in the upcoming FY 2026–27 budget.

They said country’s steel industry is facing an extreme crisis. Current tax regime has sharply increased production costs, threatening the viability of manufacturers and potentially disrupting the country’s infrastructure development.

BSMA leaders said this at a pre-budget meeting held at the National Board of Revenue (NBR) headquarters in the city today.

NBR Chairman Abdur Rahman Khan presided over the meeting while representatives from multiple trade bodies joined the discussion.

BSMA leaders said the cumulative impact of tax and duty hikes in FY 2025–26, along with rising operational costs, has weakened the financial position of steel producers.

They warned that several mills are struggling to survive, stressing the need for immediate fiscal relief to prevent closure of the mills and safeguard employment.

To ease pressure on the sector, BSMA proposed a set of fiscal measures, including reduction of Advance Income Tax (AIT) on raw material imports from Taka 600 to Taka 500 per metric ton; reduction of Tax Deducted at Source (TDS) on rod sales from 2 percent to 1 percent; reduction of turnover tax from 1 percent to 0.5 percent and introduction of a functional mechanism for AIT adjustment or refunds.

The association also pointed out that although customs duty on raw material imports was withdrawn earlier; a new VAT of Taka 1,800 per metric ton was imposed, effectively offsetting the intended benefit.

BSMA President Jahangir Alam said the sector is facing a combined domestic and global challenges.

He cited the lingering effects of the COVID-19 pandemic, the Russia-Ukraine conflict, depreciation of the Taka against the US dollar, and rising energy prices as major cost drivers.

High bank interest rates and a slowdown in construction activities have further reduced demand, deepening the liquidity crisis in the sector, he added.

NBR Chairman acknowledged the concerns but noted that revenue constraints limit the scope for concessions.

“Due to existing limitations and pressure to meet revenue targets, it will not be possible to accept all demands. However, logical proposals will be considered,” he said.

He also assured taking steps to simplify HS Code complexities and improve valuation mechanisms in line with global price fluctuations. He also warned against misuse of fiscal benefits.

Leaders of Bangladesh Re-Rolling Mills Association (BRRMA), Bangladesh Iron and Steel Importers Association (BISIA), Bangladesh Chemical Importers and Merchants Association (BCIMA), Bangladesh Paint Manufacturers Association (BPMA), and Lubricants Importers Association of Bangladesh (LIAB) were present.