Despite announcing the poultry industry as a tax-free sector in the budget for 2014-15 fiscal year, the government in the proposed budget for FY 2015-16 imposed taxes to the disappointment of poultry farmers and entrepreneurs.
At a meeting held yesterday at the office of the Bangladesh Poultry Industries Coordination Committee (BPICC) at Niketan in the capital, the leaders of the industry urged the finance minister to reconsider the decision and uphold the tax-free facilities up to 2019, according to a press release.
Otherwise the consumers as well as the farmers and investors would suffer a lot due to the price hike of egg and chicken, the leaders opined.
Moshiur Rahman, convener of BPICC and president of the Feed Industries Association of Bangladesh (FIAB) said 30 years ago the poultry industry was completely reliant on import. “But now the industry is meeting hundred percent local demand of egg, chicken and day-old chicks. Imposing tax will hinder this growth.”
Secretary of the World’s Poultry Science Association-Bangladesh Branch (WPSA-BB), Shamsul Arefin Khaled Anjon, said 15% duty was imposed on the poultry income tax, which was zero in the last budget. Income tax on poultry feed, which was 3% was also raised to 15% in the proposed budget.
“The same rate has been imposed on poultry hatchery. We want this sector to be tax-free at least up to 2019. We are requesting the government to withdraw the tax for the survival of this industry so that we can continue to supply protein at a comparatively low cost,” said Anjon.
Saidur Rahman Babu, secretary of the Breeders’ Association of Bangladesh (BAB) said the duty on some of the most essential ingredients of poultry feed – Soya meals and Oil cake – has been raised from zero to 5%. It would certainly cause price hike of poultry and fish feed in the market, Babu added.
Dr MM Khan, secretary, Bangladesh Poultry Industries Association (BPEA) said: “According to our assessment, around 4.26 crore pieces of egg and 3.5 thousand tonnes of chicken meat will be required daily to meet the local demand and for this investment worth Tk60,000 crore is needed.”
“In this circumstance if new taxes are imposed the prices of egg and chicken will go up, the development of the poultry sector will be hampered and the investment will slow down,” Khan added.
The poultry leaders, however, thanked 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 the tax free category.