Businesses at a meeting here today urged the government to reduce high import duty on cement, which will save a lot of money of the cement users who are paying over Tk 200 extra per bag in the local market.
It would also aid smooth growth of the real estate sector and make residential flats affordable to the lower
middle class people, they observed.
The prices of flats were now remaining beyond the reach of 90 per cent of people mainly because of the
excessive prices of construction materials like cement and bricks, the businesses also said.
"The cement buyers are paying Tk 400 to Tk 450 a bag while the import cost will be below Tk 200 a bag. The
government is directly discouraging import of cement. It is good. But why will the buyers pay exorbitant prices for cement, which is the main raw material for construction," said AM Mahbub Chowdhury, vice president of the Chittagong Metropolitan Chamber of Commerce and Industry.
He said the cement industry in the country was being "controlled by a syndicate of local cement producers who successfully used the government or its finance ministry to impose unusual duty and other charges on import of the product."
"This is one of the main reasons why the real estate developers have been raising the flat prices beyond the reach of the commoners. This is not a fair deal from the finance ministry or the National Board of Revenue.
We would urge the government to lift all barriers to import of cement in the era of free market economy," he
said.
Turkey-Bangladesh Chamber of Commerce and Industry Earlier secretary general Murat Karaca said Turkey is one of the leading exporters of construction materials, especially cement.
He said that his country could export cement to Bangladesh at prices in the range of US $ 2.00 or around Tk
150 per bag.
The businesses of Turkey would also like to set up cement factories in Bangladesh, especially in Chittagong, under joint ventures with the local entrepreneurs, he said in the meeting.
Murat Karaca was accorded a reception at the Chittagong Metropolitan Chamber of Commerce and Industry
in the afternoon, as Mr. Karaca arrived in the city to invite the local businesses to attend the Turkey World
Trade Bridge (TWTB 2014) to be held from June 6 to 22 in Istanbul.
The Confederation of Businessmen and Industrialists of Turkiye (TUSCON) will organise the 17-day trade fair.
On the sidelines of the reception, Mr. Karaca told the FE that Turkey had a big reserve of clinker, the main raw material for cement, and the businesses of Turkey expressed eagerness to set up cement plants in
Bangladesh, especially in the port city of Chittagong under joint ventures.
Mr. Karaca further said that the Republic of Turkey with the population only half the size of that in Bangladesh was importing goods worth US $ 240 billion while the share of Bangladesh in his country's imports stood at around $ 2 million.
"Both the countries maintain an excellent bilateral relation and Bangladesh can enhance its volume of exports to Turkey and import cement from there at much lower prices than that locally available," he said.
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