BM Desk : Entrepreneurs have been unable to mend the damage inflicted on the poultry sector by the coronavirus pandemic. Subsequently, the prices of poultry ingredients have risen consecutively. In this challenging environment for the sector, the proposed budget has placed a tax burden on the poultry industry. The turnover tax for institutions within this sector has been raised from 0.6 percent to 1 percent. Additionally, the corporate tax has increased from 15 percent to 27.5 percent.

Business owners express concern that the added tax on this sector may lead to higher prices for broiler chicken eggs and meat, which are typically regarded as affordable and readily available sources of protein. Ultimately, this will exert pressure on consumers. To address the country’s food security needs, they have called for a reduction of the turnover tax to 0.5 percent and the corporate tax to 20 percent.

Shamsul Arefin Khaled, President of the Feed Industries Association of Bangladesh (FIAB) and BPICC Convener, informed media that the rise in turnover tax will escalate production costs, thereby obstructing efforts to modernize and lower expenses. Given that poultry entrepreneurs operate with a maximum profit margin of only 2 to 3 percent, imposing such a high tax rate is illogical.

He further stated that the total tax burden on companies will range from 35 to 50 percent, making it challenging to sustain business operations. This situation poses risks for entrepreneurs and complicates the ability to provide eggs and meat to the market at reasonable prices. They are urging the government to reassess this matter.

Mashiur Rahman, the President of the World Poultry Science Association-Bangladesh Branch (WAPSA-Bangladesh), informed the media, “We are striving to maintain reasonable prices for meat and eggs over the long term. However, as we import machinery to modernize this industry, we face substantial import duties. Additionally, our corporate tax has nearly doubled. We are advocating for the poultry sector to be exempt from taxes for a specific duration to ensure long-term stability. Our goal is to enhance the consumption of eggs and meat to improve the nutrition of low-income individuals.

Ehtesham B Shahjahan, Vice President of the Breeders Association of Bangladesh (BAB), stated that chicken has become the most economical source of protein due to a decrease in fish production. Nevertheless, 20 to 25 percent of the country’s layer farms have already shut down. If we continue to exert pressure instead of boosting production, the repercussions will ultimately affect consumers. The proposed budget has raised the corporate tax to 27.5 percent, up from 15 percent since 2015, when there was a tax in place.

Mahabubur Rahman, President of the Breeders Association of Bangladesh (BAB), mentioned that there are already complications in tax collection. Taxes should be collected based on the company’s profits, and there is no exemption for losses. If we aim to increase revenue from this sector by targeting it, it will lead to a crisis.

Entrepreneurs have also pointed out that currently, an advance tax of up to 2 percent is imposed on corn and 5 percent on soybeans for importing raw materials for feed production. Although this advance tax is meant to be refunded, it is currently stuck due to various complications. They have been requesting a reduction in the advance tax.

One of the foundations of the nation’s food security is the chicken industry, the entrepreneurs cautioned the government. The ability of people to consume protein will decline if this sector is under strain, and eventually, the health sector will grow even more. As a result, they demanded that the budget’s tax policy for the chicken industry be reviewed.