Displaying items by tag: Tax
Iran: Abdul Reza Sheikhan, the secretary of the Cement Industry Association, has warned that an increase to maritime shipping rates is further restricting exports in conjunction with US-backed trade sanctions. He said that the country has a production capacity of 87.5Mt/yr, that 48Mt is consumed domestically and that less than 15% is exported, according to the Islamic Republic News Agency. He also identified ‘negative’ competition between cement producers over exports has damaged the industry. To counter this, export teams in the east, west and south of the country have been formed.
The country exports cement to 17 countries including Iraq, Afghanistan, the Commonwealth of Independent States (CIS) region, Bangladesh and countries in Africa. It is the sixth largest exporter in the world.
Philippine Cement Importers Association says prices may rise if tariffs are introduced
03 January 2019Philippines: Napoleon Co, the president of the Philippine Cement Importers Association (PCIA), says that the introduction of tariffs on cement imports may lead to higher prices. He said that if new tariffs were started some importers would cease operating, according to the Manila Standard newspaper. He then argued that local producers might raise their prices to match the higher cost of imported cement. Co made the comment in response to an on-going investigation into tariffs being run by the Department of Trade and Industry (DTI). Several importers allegedly stopped imported cement after the DTI launched the investigation in September 2018.
Cement import tariff upheld by Caribbean Court Of Justice
26 December 2018Barbados: The Caribbean Court Of Justice has ruled in favour of Trinidad Cement on maintaining a 60% tariff on imports of cement. The subsidiary of Mexico’s Cemex and its own subsidiary Arawak Cement complained that import company Rock Hard Cement was only being taxed by 5%, according to the Nation News newspaper. However, the case will continue as the ruling only refers to hydraulic cement. It is unclear what classification of cement that Rock Hard Cement is importing.
Philippines: The Philippine Cement Importers Association (PCIA) has warned of a slowdown in the construction sector due to an investigation in tariffs started by the Department of Trade and Industry (DTI) in September 2018. The association says that several importers are ‘wary’ and have stopped imports, according to Philippine Daily Inquirer newspaper. Napoleon Co, president of the PCIA, said that although local cement producers have started building new plants it will take three or four years for these to start production. In the meantime, he argued, importers are required to meet market demand. He added that import tariffs on cement would also add costs to end consumers.
Indian prime minister aiming to reduce tax on cement
20 December 2018India: Prime Minister Narendra Modi says he wants to reduce the rate of the Goods and Services Tax (GST) on regular items, including cement, to 18% from 28%. A proposal to reduce the rate will be considered by the GST Council in late December 2018, according to the Economic Times. Luxury items are likely to remain in the higher tax bracket.
India: The Cement Manufacturers Association has forecast growth above 10% in the 2019 financial year to the end of March 2019. It is expecting growth to be supported by the government's increased spending on large-scale infrastructure projects and growing residential housing, according to the Press Trust of India. It follows growth of around 13% year-on-year in the first half of the year. If growth stays at above 10% in 2019 it will be the fastest increase since the industry slowed down in 2011. The association is also attempting to lobby the government to lower the 28% tax rate applicable under the General Service Tax.
Ghorahi Cement lauded for tax return
19 November 2018Nepal: Ghorahi Cement has been praised by the Inland Revenue Department for paying one of the highest amount of value added tax (VAT) in the country in the 2017 – 2018 financial year, according to the Himalayan Times. The cement producer was awarded the accolade as part of the seventh National Tax Day.
Industry pans levy as a new import tax in Australia
16 November 2018Australia: Industry groups, including cement producers, are lobbying against a new import tax, the Biosecurity Imports Levy. They allege that that new tariff will increase costs by 3000 - 5000% on the inputs for cement, steel and aluminium production, according to the Australian newspaper. The new levy was introduced in the May 2018 budget for implementation in July 2019. It intends to tighten the country’s biosecurity.
Industry lobbyists complain that it will impose a US$0.7/t levy on ‘non-containerised’ cargo for biosecurity inspections, dramatically increasing the cost of inspection for bulk imports of materials. They also deny that it will improve biosecurity outcomes.
Cement Industry Federation chief executive Margie Thomson said that the tax unfairly punished non-containerised cargoes. “It shouldn’t be a tonnage levy, when the biosecurity risk is notassociated with the product.”
Regional limestone ban hits Nepalese cement producers
15 October 2018Nepal: A limestone ban in the Katari municipality has hit Saurya Cement and Cosmos Cement. The local government has banned cement producers from extracting and transporting limestone on tax grounds, according to the Himalayan Times newspaper. However, Saurya Cement said that the authorities had stopped the transportation of limestone without consultation. Krishnaraj Dulal, the director Cosmos Cement, added that the company was not required to pay tax locally as it was paying the Department of Mines at the national level.
Indian cement producers complain about Pakistani imports
24 September 2018India: Shailendra Chouksey, president of the Cement Manufacturers Association, has complained about imports of cement from Pakistan damaging the local industry. He told the Indo-Asian News Service that cement from Pakistan was up to 15% cheaper than Indian cement. There has been no customs duty on cement imports from Pakistan since 2007, making it competitive in comparison to local production, especially in states that neighbour Pakistan. By comparison, imports of cement to Pakistan face a duty of 11%.
Data from the Directorate General of Foreign Trade shows that 1.68Mt of cement was imported into India during the 2017 – 2018 financial year that ended in March 2018. 1.27Mt or 76% of this total was imported from Pakistan.
Indian producers have also complained about the high rate of the local Goods and Services Tax (GST) in the country. They are hoping to reduce the rate to 18% from 28% at present.