Proposed tax on shrimp exporters to ruin industry
Wednesday, 16 June 2010
FE Report
The country's shrimp exporters Tuesday demanded withdrawal of proposed 1.0 per cent income tax (IT) imposed at source, saying the "anti-export and unrealistic" fiscal measure would destroy the industry.
"If the government implements the proposed, it will ruin the industry," Musa Miah, president of Bangladesh Frozen Foods Exporters Association (BFFEA), said.
The sector, which has been facing negative growth for the last few years, will fail to sustain due to the imposition of four times higher tax, he added.
The government has proposed to increase income tax at source to 1.0 per cent from the existing 0.25 per cent in the proposed national budget for the next fiscal year of 2010-2011.
The BFFEA president said the tax hike is an anti-export step and unrealistic.
"The sector has been incurring losses to the tune of Tk 13.0 billion for the last three years as the price of shrimp and fish registered fall in the international market due to the economic meltdown."
"When the industry is trying to retain the market and buyers despite losses, the new decision will ruin the competitiveness of the products in the international market," he added.
Maqsudur Rahman, managing director of Mahi Fish Processing Ltd, told the FE: "The country will face a major setback if income tax at source is implemented."
The impact of the decision will last long because the production would decrease, said Mr Rahman adding that growers will get less price as the production cost will rise to 5.0 per cent, which will discourage them from further farming.
The country's shrimp exporters Tuesday demanded withdrawal of proposed 1.0 per cent income tax (IT) imposed at source, saying the "anti-export and unrealistic" fiscal measure would destroy the industry.
"If the government implements the proposed, it will ruin the industry," Musa Miah, president of Bangladesh Frozen Foods Exporters Association (BFFEA), said.
The sector, which has been facing negative growth for the last few years, will fail to sustain due to the imposition of four times higher tax, he added.
The government has proposed to increase income tax at source to 1.0 per cent from the existing 0.25 per cent in the proposed national budget for the next fiscal year of 2010-2011.
The BFFEA president said the tax hike is an anti-export step and unrealistic.
"The sector has been incurring losses to the tune of Tk 13.0 billion for the last three years as the price of shrimp and fish registered fall in the international market due to the economic meltdown."
"When the industry is trying to retain the market and buyers despite losses, the new decision will ruin the competitiveness of the products in the international market," he added.
Maqsudur Rahman, managing director of Mahi Fish Processing Ltd, told the FE: "The country will face a major setback if income tax at source is implemented."
The impact of the decision will last long because the production would decrease, said Mr Rahman adding that growers will get less price as the production cost will rise to 5.0 per cent, which will discourage them from further farming.