Poultry feed and farm machinery might be cheaper from the next fiscal year amid cut in duties on their raw material imports.
The poultry and agricultural machinery sectors got budgetary gifts as the budget for fiscal year 2020-21 (FY '21) has deducted import duties on some key raw materials.
The finance minister in his budget speech at Jatiya Sangsad (Parliament) on Thursday proposed to remove existing duties on importing soya cake and soya protein concentrates to help reducing animal feed prices.
He proposed to remove the existing five per cent regulatory duty on soya cake import.
It also proposed to cut the 10 per cent customs duty (CD) on soya protein concentrates.
The FY '21 budget also raised duties on readymade poultry items like cuts and offal of chickens by 15 to 20 per cent to safeguard the local industry.
According to the Feed Industries Association of Bangladesh (FIAB), annual demand for animal feed is now 6.0 million tonnes in the country.
Maize and soyabean comprises more than 80 per cent of ingredients of commercial animal feeds for poultry, cattle and fisheries sectors.
To ensure sustainable development in the fish, poultry and dairy sector, the finance minister proposed to continue the existing tax exemptions of the sectors.
Agricultural machinery manufacturers could now import 17 kinds of materials at only 1.0 per cent of CD which was earlier 5.0-10 per cent.
Tyre, tube, ball bearing, roller chain, gear boxes, blower for grain drier, etc. have come under the privilege.
VAT (value added tax) has also been removed from tyre and rubber-made inner tubes for tractors at their import stage which was 15 per cent earlier. tonmoy.
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