Agro-processors want 30pc cash incentive over export

Agro-processors have urged the government to up cash incentive to 30 per cent from the existing 20 per cent to be more competitive than neighbouring countries.
The cash incentive facility is going to end in June 2015, but the processors urged the government to keep it intact for next five years.
The Bangladesh Agro-Processors' Association at a pre-budgetary meeting with the National Board of Revenue (NBR) proposed that the government should continue the cash incentive facility for FY'16-FY'20 period.
They also proposed to reduce corporate tax to 20 per cent from existing 37.5 per cent on agro-industry to encourage the emerging sector.
In the budget proposal, they also demanded tax holiday facility for all capital machinery import.
"And removal of all taxes on capital machinery will directly benefit the farmers as the agro-processing sector is much labour-intensive," they said.  They also proposed for 2.0 per cent advance income tax on import from 5.0 per cent at present.
The association also demanded reduction of duties on raw materials such as cumin seeds, black pepper and cardamom to 5.0 per cent from present 20-25 per cent.
The association said these spices are not grown in Bangladesh but are very important ingredients for many products.
However, the Feed Industries Association of Bangladesh (FIAB) in its proposal said feed comprises 70 per cent of the cost of the poultry sector.
They proposed for withdrawal of the 5 per cent duty on maize import --he major ingredient of poultry and fish feed.
Bangladesh Cold Storage Association (BCSA) proposed withdrawing VAT on electricity bills which is now 15 per cent.    
The association also urged to raise cash incentive against potato flex export to 30 per cent from 20 per cent now.
Bangladesh Rubber Garden Owners Association (BRGOA) proposed to increase duty on 'RSS' rubber import as the variety grows well in Bangladesh.
The association also urged the government for activating the 'Rubber Board' which was formed three years back but remained unused.  
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