Frozen food exporters seek full waiver of tax at source in 2015-16 national budget

FE report
The country's frozen food exporters sought full waiver of tax at source from existing 0.60 per cent in the national budget for 2015-16.
"We have demanded five per cent advance income tax waiver on cash incentive for frozen food export and fixation of a unified dollar rate for exportable frozen foods and fish," Bangladesh Frozen Foods Exporters Association (BFFEA) President SM Amzad Hossain told the FE on Monday.
 He said the association had sent a letter in this regard to the National Board of Revenue (NBR) and Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) early this month. A pre-budget meeting will be held next month with NRB officials., he added.
"The export orders and price marked a sharp fall for the last couple of months due to the devaluation of euro, rouble and yen against dollar. So we have to sell our products at a lower price"
He said only 15 per cent capacity of the fish processing plants is being utilised due to shortage of shrimp thus increasing the cost of production. It has also created competition locally and in the international market, he further said.
Though the international market price dropped the interest rate of bank loan remains the same.
The BFFEA president said: "Transportation of frozen foods and activities of fish processing plants are being disrupted following nationwide blockade and shutdowns since early January".
Besides, the labour wage, electricity bill and other overhead expenditures are increasing.
Different banks calculate the dollar rate in export bill negotiation that varies from 0.10 paisa to 0.35 paisa. The banks are gaining 30 per cent extra margin.
They also urged the government to take initiative so that the banks do not consider the extra margin for export bill.    
The exporters sought increase in the cash incentive from 10 per cent to 20 per cent.
They also sought waiver of tax at source on fish and shrimp farmers and suppliers.
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