Government's revenue authority issued Sunday two statutory regulatory orders (SROs) introducing ceilings of tax-free income for owners of both poultry and fish farms, amid a note of skepticism from taxmen.
In the SROs, issued by the National Board of Revenue (NBR), tax-free limit of income for the fish-farm owners has been set at Tk 1.0 million while for poultry, shrimp and shrimp-hatchery owners at Tk 2.0 million.
The income-tax wing of the board issued the two SROs, dated August 16, 2015, giving retrospective effect to the tax relief from July 01, 2015.
Under the existing rules, fish-farm owners have to pay tax at the regular rate applicable for individual or corporate taxpayers.
Poultry farm owners used to pay 3.0 per cent tax on their annual income from the sector.
From the current financial year (FY), 2015-16, there would be a tax-free ceiling, for the first time, on income from fish farms and poultry and shrimp sectors.
As per the twin SROs, fish-farm owners will have to pay 5.0 per cent tax on their income above Tk 1.0 million to Tk 2.0 million.
Tax rate has been set at 10 per cent on their income above Tk 2.0 million from fish farms.
Poultry, shrimp and shrimp-hatchery farm owners will enjoy a higher ceiling of tax-free income but the same rates of tax as of the fish-farmers on incomes above the limit.
They will have to pay 5.0 per cent tax on income ranging from Tk 2.0 million to Tk 3.0 million. For income above Tk 3.0 million, tax rate has been set at 10 per cent.
In the national budget placed in June this year the government had pledged to offer the special tax benefit for fisheries and poultry sectors to facilitate growth of the protein-providers.
However, tax officials fear a large scope for abusing the facility as there had been several incidents of evading payment of due amounts of tax, specially for fish farms, through diverting incomes from other sources into fish-farming sector.
The government had withdrawn a cut-down tax rate of 3.0 per cent on fish-farm income last year and slapped income tax at regular rates, as the matter became a hot topic of talk.
doulot_akter@yahoo.com
© 2026 - All Rights with The Financial Express
