Doubling tax on land used for shrimp cultivation opposed
Thursday, 20 May 2010
FE Report
Fish farmers demanded withdrawal of a government decision on doubling tax on land used for shrimp cultivation saying the tariff hike would affect the sector adversely.
The government has increased tax to Tk 3,000 per acre of land from Tk 1,500 per acre annually, from January this year.
Shrimp farmers also claimed that the decision would ruin the industry as many of them already switched over to other profession.
"This is the second largest foreign currency earning sector," said Musa Miah, president of Bangladesh Frozen Foods Exporters Association (BFFEA).
The government's decision on 100 per cent rise in tax on land will have great negative impact on the sector's further growth, he added.
"The latest setback adds more woes to the country's export industry already reeling from the global recession," Salah Uddin Ahmed, a farmer of Cox's Bazar told the FE.
At the rate of Tk 1500, farmers would normally fail to meet the production target, "How they will be able to meet the production at Tk 3000?" Mr Ahmed, who is also an exporter, said.
This means the fish farmers will lose interest for shrimp cultivation and concentrate themselves in salt or rice cultivation, which will badly affect the industry, he said.
Frozen shrimp export has already suffered from negative growth and this step will further worsen the situation, he added.
Frozen food exports might fall short of target by 30 per cent in the current fiscal year as the sector output has been badly hit by cyclone Aila and Sidr, industry people fear.
Shrimp is cultivated in Satkhira, Khulna, Bagerhat and Cox's Bazar areas, they said.
A total of 60,000 acres of land is cultivated only in Cox's Bazar and shrimp is shipped worth about Tk 10.0 billion only from Cox's Bazar, which is around 40 per cent of the total export, they added.
Bangladesh ships around half billion dollars worth of shrimp every year, making it the country's second largest export item. The industry employs more than a million people mainly in the country's southwestern coastal districts.
Fish farmers demanded withdrawal of a government decision on doubling tax on land used for shrimp cultivation saying the tariff hike would affect the sector adversely.
The government has increased tax to Tk 3,000 per acre of land from Tk 1,500 per acre annually, from January this year.
Shrimp farmers also claimed that the decision would ruin the industry as many of them already switched over to other profession.
"This is the second largest foreign currency earning sector," said Musa Miah, president of Bangladesh Frozen Foods Exporters Association (BFFEA).
The government's decision on 100 per cent rise in tax on land will have great negative impact on the sector's further growth, he added.
"The latest setback adds more woes to the country's export industry already reeling from the global recession," Salah Uddin Ahmed, a farmer of Cox's Bazar told the FE.
At the rate of Tk 1500, farmers would normally fail to meet the production target, "How they will be able to meet the production at Tk 3000?" Mr Ahmed, who is also an exporter, said.
This means the fish farmers will lose interest for shrimp cultivation and concentrate themselves in salt or rice cultivation, which will badly affect the industry, he said.
Frozen shrimp export has already suffered from negative growth and this step will further worsen the situation, he added.
Frozen food exports might fall short of target by 30 per cent in the current fiscal year as the sector output has been badly hit by cyclone Aila and Sidr, industry people fear.
Shrimp is cultivated in Satkhira, Khulna, Bagerhat and Cox's Bazar areas, they said.
A total of 60,000 acres of land is cultivated only in Cox's Bazar and shrimp is shipped worth about Tk 10.0 billion only from Cox's Bazar, which is around 40 per cent of the total export, they added.
Bangladesh ships around half billion dollars worth of shrimp every year, making it the country's second largest export item. The industry employs more than a million people mainly in the country's southwestern coastal districts.