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Qatar's construction industry get custom tax exemption on construction materials.
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| 26 Jul 2007 |
In accordance to Qatari newspaper The Peninisula, the booming construction industry is expected to get a further boost as some basic building materials like cement, steel and gravel have been exempted from customs duty. The construction industry has heartily welcomed a new law which was passed by the Deputy Emir, HH Sheikh Tamim bin Hamad Al Thani, on Tuesday.
The Qatar Chamber of Commerce and Industry, representative body of the private sector, while lauding the exemptions as an historic and timely move, said some other key building materials also need to be excluded from dutiable imports.
Doha International Airport is one the larger ongoing projects in Qatar.
A source from the Chamber said: "The initiative is praiseworthy but we need exemptions on more items which are commonly used in the construction industry."
A source from a contracting company hailed the new law immensely and said the contracting sector, especially, has been battling shortages of these basic building materials. "We were desperately looking for customs relief on these items without which we can't do anything," he said.
He described the items which need to be exempted from customs levy as tiles, ceramics and paints, saying they are mostly imported from European countries and are quite expensive in the local market as compared to some neighbouring countries.
The shortages eventually lead to unprecedented price escalations and delays in executing projects, he said. "Traders can now freely import these materials and the shortages will end, benefiting the construction industry."
The law makes it clear that the customs exemption on these materials will apply only to imports from countries outside the GCC. "The legislation has come at the right time," another source from the construction industry said. "We are extremely happy."
The law comes into force immediately after being published in the official gazette and will remain in force for three years beginning January 1, 2007. It has two articles and gives three tables which list the items exempted from customs levy.
The items include Portland and white cement, clinker, the cement used in underwater structures and in saline environs as well as the normal one. The table in all lists eight types of cement which will not attract customs duty.
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