Poultry entrepreneurs demand tax exemption till 2019
Despite an announcement in the last budget (2014-15) as a tax free sector, the poultry farmers expressed dissatisfaction as the new budget (2015-16) imposed taxes on them.
In a special meeting held Wednesday at the office of the Bangladesh Poultry Industries Coordination Committee (BPICC) at Niketan, the poultry leaders urged Finance Minister AMA Muhith to continue the tax free facilities until 2019, says a press release.
Otherwise, the consumers as well as the farmers and investors will have to suffer a lot for price hike of egg and chicken, poultry leaders added.
Moshiur Rahman, convener, BPICC and president of the Feed Industries Association (FIAB), said the poultry was completely an import-based sector, 30 years back but now the industry is meeting cent percent local demand of egg, chicken, day-old-chicks.
The sector was badly affected by Avian Influenza in 2007, 2009 and 2011. Almost 50 per cent farms were closed and the industry suffered losses of around Tk 5.5 thousand crores. The number of poultry farms reduced to 40-50 thousands only from around one lakh 20 thousands. Despite this huge set back, the industry could move ahead as the government decla-red poultry industry as a tax free sector, the statement added.
Shamsul Arefin Khaled Anjon, secretary, the Worlds Poultry Science Association-Bangladesh Branch (WPSA-BB) said that the poultry income tax was zero but the proposed AIT is 15 per cent, income tax on poultry feed was 3 per cent but the proposed rate is 15 per cent. The same rate (15 per cent) has been imposed on poultry hatchery.
We want this sector tax free at least upto 2019 and so humbly requesting the Finance Minister to honor our request for the sake of the survival of this industry and for the sake of supplying animal protein at a comparatively lower cost, Mr. Anjon added.
Saidur Rahman Babu, secretary, the Breeders Associa-tion of Bangladesh (BAB) said that the duty on some of the most essential ingredients of poultry feed- Soya meals, HS code: 1208.10.00 and Oil cake, HS code: 2306.41.00, have been raised from zero to 5 per cent.
It would certainly cause price hike of poultry and fish feed in the market, Babu added.
Nazrul Islam, secretary, Animal Health Companies Association (AHCAB) and Helal Uddin, secretary, Bangladesh Agro Feed Ingredients Importers and Traders Association (BAFIITA), said that due to recent changes in HS code of some of the poultry items globally, the feed manufacturers as well as the importers had been facing hurdles. If the problem is not solved immediately, the industry will be in big problem.
MM Khan, secretary, Bangladesh Poultry Industries Association (BPEA) said, According to our assessment, around 4 crores 26 lakhs pieces of egg and 3.5 thousand MT chicken meat will be required daily to meet the local demand, and for this around 50-60 thousand crores taka investment will be needed.
On this ground if new taxes are imposed the price of egg and chicken would go up, the development of poultry sector to be hampered and the investment would fall down, Khan added. However, the poultry leaders expressed their gratitude to the Finance Minister for continuing the duty and tax free import of raw materials and equipment, and for adding a new item locally produced animal protein premix in this tax free category.
