They should import buying and selling gear at excessive obligation, limiting the potential development of this sector
As an rising sector, meat processing business needs all of the privileges the agriculture sector receives, equivalent to decrease company tax price, extra entry to finance, and decrease borrowing charges.
The Bangladesh Halal Meat Processing Industries Affiliation issued a press launch on Tuesday, the place it highlighted a number of challenges the sector is presently going through.
As an illustration, to additional develop the processed meat export sector, obligation exemption is required for specialised substances and packaging supplies.
The present whole tax incidence on these specialised supplies, whereas imported, ranges from 89-127%.
To develop long-term sustainability, the feed price of livestock must be decreased by way of obligation exemption for livestock feed import till Bangladesh establishes self-sufficiency within the livestock feed, the discharge additionally mentioned.
Seamless cool chain is key for secure meat processing. That’s the reason chilly chain gear used for meat processing and promoting must be handled as capital equipment.
At present, meat processors should import buying and selling gear at excessive obligation, limiting the potential development of this sector.
As an illustration, refrigeration show models’ present tax incidence whereas importing is 104%.
That’s the reason the affiliation really helpful that cool chain gear imported by meat processors be handled as capital gear.
Extraordinary obligation exemption underneath the South Asian Free Commerce Settlement (SAFTA) brings in low-cost and unverified high quality buffalo meats from India.
Indian meat and buffalos are given as little as 14% tax incidence versus the common price of 58%.
These imported meats are offered in numerous moist markets and roadside eating places with out correct declaration and disclosure after being thawed.
Frozen meat, if offered after a number of situations of thawing in unhygienic moist markets, could cause vital well being points. Being a non-traditional import merchandise, Bangladesh doesn’t have the right lab services and monitoring capabilities to mitigate the well being threat from this substandard meat.
Contemplating the excessive implication on the agricultural economic system, this kind of obligation exemption needs to be instantly withdrawn, the affiliation additionally demanded.
In addition they mentioned that since 2014, after the halting of Indian cattle border commerce, Bangladesh has seen phenomenal development in ruminant (cattle-Goat-Buffalo-Sheep) manufacturing.
This buoyant development within the livestock sector has resulted in a meat surplus of 300,000 tons every year.
As a predominantly Muslim nation, Bangladesh has the potental to emerge as a Halal meat exporter internationally.
The halal meat market dimension is round $500 billion globally.
Over the past 20 years, the poultry business in Bangladesh has grown exponentially by way of the entrepreneurial spirit of rural poultry farmers, industrial funding in hatchery, feed, and different ancillary providers by native entrepreneurs, and constant coverage help.
Processors can export the excess meat generated lately to high-value markets just like the US and Europe after additional processing (equivalent to changing into chilly cuts, snacks, and sausages).
Nonetheless, not too long ago, Bangladesh has allowed particular obligation exemptions, particularly for Indian frozen meat.
This will probably be detrimental to Bangladesh by lowering the livestock rearing-based buoyancy in rural economies.