Taxes, duties push up poultry production cost

Poultry firms leaders said Wednesday production cost of egg, chicken  meat, poultry feed and day-old-chicks has gone up due to the withdrawal of tax exemption facilities and imposition of taxes and duties on the sector, reports UNB.
The Bangladesh Poultry Industries Coordination Committee (BPICC) expressed its grave concern over the imposition of taxes and duties at a special meeting held at BPICC office in city's Niketan area.
Referring that imposition of new taxes increased egg price recently, the BPICC said consumers have been shocked by the hike in the poultry produces as the price of beef, mutton and fish have also been remaining high over the last couple of months.
There will be a negative impact and a tendency among the consumers to reduce poultry and meat consumption which will hamper the demand and supply chain, and the future investment in poultry sector, observed the leaders of the BIPCC.
Many farms had already been closed and many of the farms are waiting to shut down as the businesses are suffering losses for high production cost, they noted.
If the situation continues, price of egg and chicken may go up further after Eid-ul-Azha, they added.
They urged the Prime Minister to continue tax exemption for at least another 10 years, considering the demand of animal protein of 160 million people.
Convener of BPICC Moshiur Rahman said the income tax on commercial poultry farming and hatchery was zero, but now the highest ceiling is 10 per cent and income tax on poultry feed was 03 per cent which is now up to 10 per cent.
Animal Health Companies Association of Bangladesh (AHCAB) secretary Dr Nazrul Islam said poultry industry suffered losses from 2007 to 2011 for Avian Influenza (AI) outbreak.  The industry is almost free from AI virus in the last two years for using AI vaccine.
But unfortunately, 04 per cent Advance Trade VAT and 05 per cent Advanced Income Tax have been imposed this year on the life saving vaccine import, he said.
Bangladesh Poultry Industries Association (BPIA) secretary general MM Khan, Bangladesh Agro Feed Ingredients Importers and Suppliers Association (BAFIITA) president Sudhir Chowdhury, Breeders' Association of Bangladesh (BAB) president Fazle Rahim Khan were present on the occasion.