People across the country will get homemade world-class LPG cylinder at cheaper rate as the budget for 2013-14 fiscal year has proposed to raise customs duty on imported cylinder from 3 to 10 percent.
Experts anticipate that the hike in customs duty will expand the domestic market for local Liquefied Petroleum Gas (LPG) cylinders. They said the LP gas users would get safe cylinders.
It has been alleged that the domestic LP gas cylinder-manufacturing companies were subjected to uneven competition due to import of cylinders produced by two foreign companies-Total Gas and Kleenheat.
Despite having international-standard product, the local entrepreneurs are hit hard for lack of level playing field.
Experts opined that local manufacturers have been exposed to uneven competition as the duties on import of materials like rolled coil, valve and welding plug used for producing local cylinder and that on import of foreign cylinders are same.
Business in domestic gas cylinder companies shrank due to uneven competition, narrowing employment opportunity.
As the new budget 2013-14 proposed raising the duties on import of gas cinders by 7 percent, the local entrepreneurs will be able to boost production volume and expand employment.
Sources said that homemade cylinders will be available to the people at cheaper rate.
Against the backdrop of growing energy crisis, new entrepreneurs will be able to invest in manufacturing and marketing bottled gas.
It is learnt from statistics that among the country’s LPG cylinder-producing firms, Bashundhara Group’s Sundarban Industrial Complex Ltd and two others- Jamuna Spacetech and TK Gas Cylinder Ltd- are able to produce 15 lakh pieces of gas cylinder annually whereas the country needs three lakh cylinders at the moment. In this regard, experts concerned said that to save the country’s local industry the imposition of 10 percent tax on the import of gas cylinder is a rational measure.
Mahbub-Uz-Zaman, Deputy Managing Director of Bashundhara Group, said this Group is able to produce 10 lakh pieces of gas cylinder in a year and the cylinders of this organisation are of international standards by its quality. Even produced cylinders are exportable to foreign countries.
He said, “If the local industries of the country do not advance to produce gas cylinders and depend on imported gas, then the consumers would have to buy the cylinder at double the current price. Besides, the matter of getting gas in time would be uncertain.”
Md. Belayet Hossain, Managing Director of Jamuna Spacetech Joint Venture Limited, said the local gas cylinder-producing companies follow the statutory rules and regulations of the government and also ensure security in producing cylinders. Due to increase in tax on imported gas cylinder, the local companies would be saved. In addition, the consumers can get the gas cylinder at cheaper rate, and timely.