BFFEA for continuation of 0.60pc tax at source

The country's frozen foods exporters have sought the continuation of the existing 0.60 per cent tax at source instead of 1.0 per cent in the proposed national budget for the fiscal year (FY) 2015-16, officials said.  
Presently, frozen foods exporters have to pay 0.60 per cent tax at source on their export products, according to the exporters concerned.
Bangladesh Frozen Foods Exporters Association (BFFEA) sent a letter to the ministry of finance (MoF) on June 09 last seeking consideration about their appeal.
"The export orders and price marked a sharp fall for the last couple of months due to the devaluation of euro and ruble against dollar. So we have to sell our products at a lower price," a source concerned said.
A negative trend is now prevailing in export of frozen fish and shrimp. In this context, the export of frozen shrimp will face severe difficulties if the proposed 1.0 per cent tax at source is implemented, the letter said.
The shrimp processing units have already suffered some 40 per cent capital deficit due to sale of the item in decreased rate in the international market. Though the international price has dropped significantly, the interest rate of bank loan remains the same, sources said.
Exporters of the sector will incur big losses. Gradually, they will be discouraged to export their item and ultimately, development and growth of the sector will be hampered seriously if the proposed 1.0 per cent tax at source is made effective, industry insiders said.  
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