March 29, 2021

 

Bangladeshi poultry sector calls for tax break to support recovery from COVID-19 impact

 

 

Bangladesh's poultry industry operators, including breeders and feed millers, have urged the government on March 28 to provide a 10-year tax break that would facilitate their recovery from pandemic-induced losses.

 

In a separate proposal, agro-processors demanded a similar tax treatment for poultry and fish feed makers.

 

The Breeders Association of Bangladesh (BAB), Feed Industries Association of Bangladesh (FIAB) and Bangladesh Agro-Processors Association (BAPA) placed these recommendations for the fiscal 2021-22 budget to the National Board of Revenue (NBR).

 

"We need the tax break so that existing operators can sustain themselves and new entrepreneurs can come to the poultry industry," said BAB president Md Rakibur Rahman.

 

"We also aim to begin export by 2025."

 

Breeders suffered losses of around Tk2,900 crore after farming nosedived in the wake of slumping demand for chicken amid COVID-19 concerns.

 

As the demand for restocking fell, breeders had to sell day-old chicken (DOC) for Tk2-5 (US$0.02-0.06) each against production costs of Tk35-40 (US$0.41-0.47) each.

 

As many breeders had to cull their livestock due to an acute shortage of buyers, BAB requested in its appeal for a tax exemption until 2030.

 

The organistion also demanded tax-free imports of certain machinery used by the poultry industry as well as exemption of tariff and tax on imports of raw materials for producing feed.

 

FIAB said feed production dropped due to reduced levels of farming.

 

Citing the spiraling prices of raw materials worldwide as well as increased container and freight charges, feed millers also called for a 10-year tax break.

 

 The Daily Star

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