The Masters Builders Association of Malaysia has warned that buyers will foot higher construction cost as a result of Putrajaya imposing new taxes on imported steel products.

"We are strongly against the imposition of these additional duties for three years until April 13, 2020.

"The imposition of the duties will definitely increase the cost of construction projects which will ultimately be passed on to the rakyat," it was quoted as saying by The Edge Markets.

The affected imported steel products are steel concrete reinforcing bars (rebar) and steel wire rods and deformed bar in coils, which are used in the construction industry.

According to an order published in the national gazette today, a 13.9 percent definitive safeguard duty will be imposed on steel wire rods and deformed bar in coils.

The definitive safeguard duty will take effect tomorrow and will last for three years, until April 2020.

The duty rate will be reduced by one percent every year.

A definitive safeguard duty of 13.42 percent will be imposed on imported steel concrete reinforcing bars.

The duty will also last for three years but will be reduced to 12.27 percent effective April 14, 2018 and 11.10 effective April 14, 2019.

These are on top of regular import duties.

The orders were signed off by Finance Minister II Abdul Johari Ghani.

The International Trade and Industry Ministry in a statement yesterday said the imposition of the definitive safeguard duties was a result of two safeguard investigations last year.

It said the investigation was based on petitions filed by the Malaysia Steel Association.

The petitions claimed that increased importation of the steel products had seriously injured the domestic steel industry.