Boiler tube, sanitary business on the wane

The government ban on gas connection to industries hit their business very hard while the downward trend in Shipping and Housing business made a big dent in the sale, said the traders. Visiting the markets in Suritola, Siddique Bazaar, Nawabpur Road and Hazi Osman Gani road area across the capital, it became evident. According to the businessmen, rise in package VAT on shops located in Dhaka and Chittagong City Corporations from Tk28,000 from Tk14,000 for the current fiscal year is a burden for them. The retailers and wholesalers said they supply MS Pipe, Semles, SS & PVC Pipe, Gas Valve, Steam Valve, Boiler Fitting, Ceramic and Sanitary goods to different parts across the country. Md Afzal Hossain Hiron, a proprietor of Afzal Trading Corporation, said he had been in the business over the past few years, but never faced such a situation earlier. “Once I made a sale between Tk1 lakh and Tk1.5 lakh on a day, but those are bygone days. Even some proprietors are forced to close their shops as they have failed to pay their employees.” Afzal shared his experience by saying that over the past couple of days he could not make any sale while around Tk1 lakh is spent per month on shop rent. “However, recently we have encountered more business cost than what we make as profit.” The trader added that they are not happy as they did not witness any proper initiative by the government. Earlier, “Bebosayi Oikkya Forum” held rally closing their shops in Dhaka Mohanagar, protesting the new VAT law which imposes a uniform 15% VAT on all types of products and services. On condition of anonymity, a merchant said harassment of buyers in loading and unloading of products by the police is also another reason for the nosedive in sale. The lawmen are also alleged to seize products if buyers don’t pay money as per their demand over parking van or truck on road to load products. Asked about it, Officer-in-Charge (OC) of Bongshal Police Station Nur-e-Alam Siddiqui refuted the allegation. Md Murad Hossain Tipu, Al-Aksha Trading proprietor, said the country’s economic condition is not well. The government runs the state on debt and so the VAT fixed in this fiscal year has been increased that has affected general people, added the trader. According to Md Shohel Rana of M/S Ananda Trading, the dullness on their business is a spillover effect of global economic recession, plus nonstop strike by opposition parties in previous year. Md Abdus Salam, proprietor of Green Agency, alleged that some local businessmen do not pay them on time. They purchase goods on credit but get away without paying. “For this reason, new traders cannot continue their business.” However, the country’s ceramic industry, which has employed around 5 lakh workers, has so far invested Tk5,000 crore and witnessed 200% growth in the last five years, according to  Bangladesh Ceramic Wares Manufacturers Association (BCWMA). Currently, there are over 50 local industries that meet the local demands and export products to many other countries. All these industries are involved mainly in production of tableware, tiles and sanitary ware. Ceramic trader Rony Sarker said: “We have no language in this regard. We are facing much trouble with our families over the business downturn. We are waiting to get the happy moment back.” Bangladesh Pipe & Tube-well Merchant’s Association President SM Akkas told the Dhaka Tribune that the recession is actually going on in all business sectors across the country. He also said increase in VAT, License fee and price of different goods put a heavy pressure on their business. Akkas, however, called for proper government initiative to ensure a favourable business climate. “We are hopeful that our business will thrive again.”