The sector people have expressed deep concern as the budget proposed to impose 2% to 5% source tax on purchase of raw materials such as maize and rice bran from the domestic source
Feed Industries Association Bangladesh (FIAB) and Breeders Association of Bangladesh (BAB) on Wednesday urged the government to withdraw 5% advance tax (AT) on imports of all kinds raw materials including maize, soybean oil cake as it would increases the production costs.
FIAB and BAB leaders came with the call at a post-budget joint press conference in the capital on Wednesday.
“For the fiscal year 2019-20, our key demand was withdrawal of 5% regulatory duty on import of soybean oil cake, 5% advance tax and customs duty on cotton seeds and palm nut and 5% AT on import of maize,” said FIAB President Ihtesham B Shahjahan.
"If the government did so, it would decrease the production cost of poultry feed, eggs and broiler," Ihtesham pointed out.
"But the proposed budget did not withdraw taxes on the aforesaid goods, rather it imposed advance tax on import of all kinds of goods, which frustrated us as the production cost would go up," said the leader,
In addition, the sector people have expressed deep concern as the budget proposed to impose 2% to 5% source tax on purchase of raw materials such as maize and rice bran from the domestic source.
"The proposed budget is again going to include tax at source on collection of raw materials for the manufacturing industry to bring parity in tax policy, and to implement this, the sector will need to pay 5% source tax on purchase of raw materials from local source," said Ihtesham.
It would be very tough to execute the tax at source on purchase as the farmers would be the ultimate sufferers, he added.
BAB President Rakibur Rahman Tutul said: “We urged the government to withdraw 5% advance tax on import parent stock and grandparent stock which produce fertilized eggs, imported maize and soybean oil cake and also withdraw 5% AT from capital machinery."
FIAB General Secretary Ahasanuzzaman, however, expressed his satisfaction over continuation of the existing facilities and rice bran export duty.