Displaying items by tag: Tax
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.
Congolese cement producers wary of tax rise
19 September 2018Republic of Congo: Cement producers have expressed concerns about government plans to increase Value Added Tax (VAT) on cement to 18% from 5%. Cement prices are expected to rise as manufacturers pass the extra cost on to consumers, according to the Central African Information Agency. An industry source quoted by the agency said that local cement plants are doing badly due to a capacity utilisation rate of 10 – 20%. The country has five cement plants with a production capacity of 3.2Mt/yr but cement consumption was only 0.7Mt in 2017.
US commences tariffs on Chinese cement products
19 September 2018US/China: The Office of the US Trade Representative has started implementing a 10% tariff on mineral and other products from China, including cement, following a consultation period. Mineral products affected by the proposed tariffs of interest to the cement industry include limestone flux, quicklime, slaked lime, gypsum, anhydrite, clinkers of Portland, aluminous, slag, supersulphate and similar hydraulic cements, white Portland cement, Portland cement, aluminous cement, slag cement, refractory cements, additives for cement, cement based building materials and more.
The latest tariff list follows an earlier decision by the US government to tax imports from China worth US$34bn that came into force in early July 2018.