Poultry entrepreneurs seek tax relief to keep prices stable

Entrepreneurs in the poultry sector have called on the government to reconsider increases in corporate and turnover tax proposed in the 2025–26 national budget, warning that the changes will raise production costs and put pressure on consumers.

At a views-exchange meeting yesterday evening (14 June) at the Bangladesh Poultry Industry Central Council office in Dhaka, they demanded that turnover tax be reduced to 0.5% and corporate tax brought back down to 20% or less.

In the proposed budget, corporate tax for the poultry sector has been increased from 15% to 27.5%, and turnover tax from 0.6% to 1%.

Shamshul Arefin Khaled, president of Feed Industries Association Bangladesh (Fiab) and convener of the central poultry industry council, said the increase in turnover tax would directly raise production costs and hinder efforts to modernise the industry.

"This sector plays an important role in ensuring food security and affordable protein for the country. If costs rise, it will ultimately burden consumers," he said.

He added that the overall tax burden on companies in the sector would now range from 35% to 50%, despite most entrepreneurs operating with only 2–3% profit margins.

"It is unreasonable to impose the same tax rate on a company with 20% profit and one with 2–3% profit," he said.

Khaled also pointed out complications in how corporate tax is collected.

"Corporate tax should be based on total company profit after all losses and gains are calculated. But in our sector, tax is imposed solely on profits from product sales, without adjusting for losses elsewhere."

He argued that targeting the poultry sector to raise revenue would create a crisis.

"If tax exemptions cannot be restored, corporate tax should at least be reduced to 20%," he said.

Entrepreneurs also raised concerns about advance tax on the import of raw materials for poultry feed.

They demanded that the advance tax on corn and soybean meal be reduced to 0.1%, down from the current 2% and 5% respectively, claiming that refunds are rarely processed despite official assurances.

Mashiur Rahman, president of World's Poultry Science Association–Bangladesh Branch, said, "We are working to keep meat and egg prices stable, but we face high import duties when bringing in machinery to modernise the sector. Now, with corporate tax nearly doubled, we urge the government to declare the poultry sector tax-exempt for a set period."

He added that their goal is to raise annual per capita meat consumption from 20kg to a higher target, and egg consumption from 122 to 200.

Ehtesham B Shahjahan, vice-president of the Breeders Association of Bangladesh (BAB), said, "Already, 20–25% of layer chicken farms have shut down. If pressure continues instead of support, production will fall and prices will rise."

He added, "We want concessions to keep prices stable. Comparing the poultry sector with others without considering its role in nutrition and food security would not be appropriate."

Entrepreneurs present at the event also noted that the supply of fish has decreased with shrinking rivers and canals, increasing the importance of poultry as a protein source.

Mahabubur Rahman, president of Breeders Association of Bangladesh, was also present at the event.