BAPA urges govt to withdraw VAT on local powdered milk plants
Thursday, 17 June 2010
FE Report
Bangladesh Agro Processors' Association (BAPA) Wednesday said local powdered milk producing plants would suffer to a great extent following withdrawal of regulatory duty on imported powered milk.
BAPA, on the other hand, urged the government to withdraw VAT on local powdered milk producing plants to promote the industry.
The Finance Minister in his budget speech proposed to withdraw 5.0 per cent regulatory duty and reduced import duty to 5.0 per cent against existing 12 per cent on powdered milk import.
The BAPA said the import cost of powdered milk would now be Tk 240 a kg while local milk plants will require Tk 340 to produce the same quantity following the budgetary measures.
BAPA officials said local plants would not survive in such a discriminatory tax structure.
One senior official of BAPA said: "Procurement price of liquid milk from marginal farmers will have to be lowered by Tk 7 to compensate the budgetary measures."
He also said this will have a devastating impact at farmer level.
BAPA, however, recommended imposing 20 per cent import duty and 10 per cent regulatory duty to create a level playing field for both the local producers and importers of powdered milk.
BAPA also urged the government to withdraw VAT on the mango milk, chocolate milk and yogurt milk considering its demand mainly for the infants.
Bangladesh Agro Processors' Association (BAPA) Wednesday said local powdered milk producing plants would suffer to a great extent following withdrawal of regulatory duty on imported powered milk.
BAPA, on the other hand, urged the government to withdraw VAT on local powdered milk producing plants to promote the industry.
The Finance Minister in his budget speech proposed to withdraw 5.0 per cent regulatory duty and reduced import duty to 5.0 per cent against existing 12 per cent on powdered milk import.
The BAPA said the import cost of powdered milk would now be Tk 240 a kg while local milk plants will require Tk 340 to produce the same quantity following the budgetary measures.
BAPA officials said local plants would not survive in such a discriminatory tax structure.
One senior official of BAPA said: "Procurement price of liquid milk from marginal farmers will have to be lowered by Tk 7 to compensate the budgetary measures."
He also said this will have a devastating impact at farmer level.
BAPA, however, recommended imposing 20 per cent import duty and 10 per cent regulatory duty to create a level playing field for both the local producers and importers of powdered milk.
BAPA also urged the government to withdraw VAT on the mango milk, chocolate milk and yogurt milk considering its demand mainly for the infants.