Steel prices unlikely to cool off despite source tax cut
The cut in source tax in the proposed budget may not bring down the price of steel, meaning the cost of infrastructure and construction projects is unlikely to decline, manufacturers say.
In the budget for the next fiscal year, Finance Minister AHM Mustafa Kamal has proposed to reduce the tax deducted at source on the supply of iron and iron products from 3 per cent to 2 per cent.
Steel prices jumped 34 per cent in the last year as millers were compelled to hike the rates in the wake of spiralling scrap prices in the global market, making the construction of public projects and home building costlier.