Displaying items by tag: Tax
Kenyan cement producers oppose clinker import tax
16 February 2023Kenya: Five cement producers are opposing an increase in import taxes on clinker that has been championed by National Cement owner Narendra Raval Guru. They claim that he has ‘been given the ear’ of the country’s current administration and is using his position as a domestic clinker manufacturer to disadvantage cement companies that grind imported clinker. The company is reportedly seeking an increase on the duty from 10% to 25%.
The five cement companies - Rai Cement, Bamburi Cement, Savannah Cement, Ndovu Cement and Riftcot – argue that this would create an unfair playing field in the local cement sector. The say that two manufacturers, National Cement and Mombasa Cement, would dominate due to their clinker manufacturing plants. Mombasa Cement has not stated a position in the dispute.
Reopening Chinese economy forecast to boost Vietnam’s cement exports in second half of 2023
13 February 2023Vietnam: Analysis by SSI Research forecasts that the reopening of the Chinese economy, following its change in public health policy towards Covid-19, should increase cement exports in the second half of 2023. If this happens it is expected to reduce competition between producers in central and northern regions, according to the Việt Nam News newspaper. Signs of a recovery in cement exports to China were already noted in the fourth quarter of 2022. However, an increase in clinker export tariffs from the start of 2023 may presents a fresh issue for the producers. Cement and clinker exports from Vietnam fell by 29% year-on-year to 31.7Mt in 2022.
Cembureau welcomes EU Green Deal
02 February 2023Europe: The European cement association, Cembureau, has 'welcomed the objectives' of the European Commission's new Green Deal industrial plan. The Green Deal attempts to create a predictable and simplified regulatory environment in which to scale up the production and implementation of net-zero CO2 technologies.
Cembureau also issued its advise for a successful Green Deal implementation. The association said that the framework must match the US Inflation Reduction Act in its provision of tax rebates and other incentives. It said that the plan must establish stable renewable energy prices and rapid permit procedures, with a focus on deployment of renewables at industrial sites. It also called for funding under the plan to finance the development of infrastructure for CO2 transport and storage.
Mangalam Cement wins Ninama Dunia limestone mine auction
30 January 2023India: Mangalam Cement has secured a lease from the Rajasthan state government for the 204Mt Ninama Dunia limestone mine in Rajasthan's Kota District. Mangalam Cement won the auction with a highest final price offer of 85%, corresponding to a tax revenue of US$1.17m/yr for the state. Throughout the operational life of the mine up to 2073, the Rajasthan state government expects to collect revenues of US$1.22bn.
The Hindustan Times newspaper has reported that the Rajasthan government expects to auction four limestone mines in Banswara District later in 2023.
Rajasthan generates 20% of India's cement-grade limestone.
Pakistan: All cement plants in Pakistan will have implemented systems for tracking taxable assets by 1 April 2023. The required upgrade comprises an applicator to generate and affix unique identification stamps on products for digital monitoring. The Business Recorder newspaper has reported that the Federal Board of Revenue initially set a deadline of 1 July 2022 for conformity with the new rules. Plant operators will bear the cost of licences for their new applicators.
Australian government to reduce industrial emissions limits
20 January 2023Australia: The government plans to reform its CO2 emissions Safeguard Mechanism in line with its stated goal of net zero CO2 emissions by 2050. Under the latest proposals, 215 industrial plants, including Australia's cement plants, will have to reduce their CO2 emissions by 4.9% year-on-year every year until 2030. The Australian newspaper has reported that the government is currently receiving submissions on the proposed reform as part of its consultation process, which will end on 24 February 2023.
The Business Council of Australia and the Australian Industry Group have encouraged the government to introduce an adjustment mechanism for imports, based on the EU's Carbon Border Adjustment Mechanism (CBAM), in conjunction with any tightening of the Safeguard Mechanism.
Karnataka limestone quarry operators suspend mining
16 January 2023India: Operators of limestone mines in Karnataka's Chamarajanagar District have suspended quarry operations indefinitely in protest against the Karnataka state government's increased licensing royalties and rules requiring drone surveillance. The companies also demand that the state government cease to implement new policies affecting them. The Times of India newspaper has reported that the strike has impacted a total of 10,000 jobs, both at quarries and downstream in the building materials and construction sectors.
Himachal Pradesh government holds talks over Gagal and Darlaghat cement plant closures
12 January 2023India: Representatives of Adani Group and cement truck drivers' unions attended talks held by the Himachal Pradesh state government, after the group closed two cement plants in the state, claiming that their costs were prohibitively high. The government appointed Himachal Consultancy Organisation to guide truck unions in reaching an agreement on new freight rates. Adani Group chair Gautam Adani said that transport costs per tonne of cement were US$1.30/km in upland areas and US$0.66/km in lowland areas. The state government previously raised value added tax (VAT) rates on diesel by 68% to US$0.09/l, resulting in total diesel costs of US$1.05/l.
India: The state of Himachal Pradesh will lose US$11.7m-worth of anticipated tax revenues in the first month of Adani Cement’s on-going closure of its Darlaghat and Gagal cement plants. In previous months, the 1.6Mt/yr Darlaghat cement plant paid US$3.29m/month in goods and services taxes, US$1.75m/month in electricity duties, US$1.45m/month in value-added tax (VAT) on diesel, US$640,000/month in mining royalties and US$363,000/month in goods carried by road and additional goods taxes. Meanwhile, the 4.4Mt/yr Gagal cement plant paid US$1.9m/month in goods and services taxes and mining royalties, US$1.57m/month in VAT on diesel, US$1.47m/month in electricity duties and US$701,000/month in goods carried by road and additional goods taxes.
The Tribune India newspaper has reported that, despite attending several rounds of talks with the state administration, Adani Cement has yet to signal any intention to resume operations at the plants. Both facilities have been closed since 15 December 2022.
Cembureau welcomes EU CBAM agreement
19 December 2022Europe: Cembureau has welcomed a satisfactory conclusion to talks over the new Carbon Border Adjustment Mechanism (CBAM) under the European Union (EU) Emissions Trading Scheme (ETS). Negotiators from different EU institutions agreed to a gradual CBAM implementation, which will officially commence in October 2023. Free allocations of ETS credits to the EU cement sector and other industries will phase out between 2026 and 2034. During this transition period, CBAM duties will apply to imported products in proportion to EU production not covered by free allocation.
Cembureau's chief executive Koen Coppenholle said “The agreements on CBAM and ETS are essential to create a global level playing field on CO2 and support our sector in its transition to carbon neutrality. It is positive that the EU institutions strengthened some key aspects of CBAM. We however regret that the adopted texts do not provide a structural solution for exports. Some EU countries export up to 50% of their domestic cement production and these will be at risk should no concrete export solution be found before 2026.”
Coppenholle added “Looking ahead, we need to focus on CBAM implementation and its water-tightness, to ensure the mechanism fully equalises CO2 costs between EU and non-EU suppliers. It is also essential that policymakers support EU industries like cement, which are confronted with unsustainably high energy costs at a time some of our trading partners are launching massive subsidy programmes. CBAM, ETS and a strong innovation fund are essential parts of the puzzle, but we look forward to European Commission proposals for a truly ambitious industrial policy, as requested by the European Council in its meeting of 15 December 2022.”