India ban on coal mining hits brick production, price
The National Board of Revenue on Monday reduced duties and taxes on coal import by 50 per cent to facilitate the brick manufacturing industry in the country amid an Indian ban on coal mining in Meghalaya, the main source of Bangladesh’s coal import for the sector, officials said.
They said that the revenue board withdrew customs duty and advance trade VAT on import of coal which is mainly used in the brick manufacturing industry and imported from India while the advance income tax on import of the product was set to be withdrawn in a day or two.
Currently, coal importers have to pay a total of 31 per cent duty and taxes on import of coal including 5 per cent customs duty, 5 per cent AIT, 4 per cent ATV and 15 per cent value-added tax.
Now, they will have to pay only 15 per cent VAT on import of the product.
The benefit, however, will not be applicable for coal of anthracite and bituminous categories, officials said adding that these two types of coal were not used in brick kilns.
Brick manufacturers, however, said that the initiative would not help the industry as the cost of import would remain high in case of import from Indonesia or China, the nearest sources of the product apart from India.
Rather they demanded that the government should provide them with coal from the Barapukuria Coal Mine, otherwise most of the brick fields would be forced to shut down their operation.
Many manufacturers have already suspended production at their brick kilns, they claimed.
Brick manufacturers and consumers said that the price of brick had already gone up due to the coal crisis in the sector as more than 80 per cent of coal needed for the sector was imported from India.
Industry insiders and revenue board officials said that the National Green Tribunal of the Indian state of Meghalaya on May 17 banned traditional coal mining following a petition filed by an environment organisation.
Meghalaya is the main source of coal for the Bangladeshi importers, they said adding that the coal was imported through land customs stations in Sylhet region including Tamabil, Shella, Bholaganj and Barchhra.
Currently, a small quantity of coal is being imported through Bhomra, Burimari and other ports from the other sources in India but that cannot meet the demand of the sector.
Bangladesh Brick Manufacturing Owners Association vice-president Asadur Rahman Khan said that the duty cut would not solve the problem as it would take time to reach the country coal imported from other countries except India while the cost of imported coal would remain high.
The government should provide coal from the Barapulkuria coal plant, even only for 20 days, to save the sector as the peak season of brick manufacturing is running out, he said.
Abdur Rouf, former vice-president of the association, said that some big importers decided to import coal from Indonesia but they were seeking high price from the brick manufacturers for that coal.
Many small importers are not getting coal from India because of shortage of supply and have been forced to suspend production at their brick kilns, he said.
-With New Age input
