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Bangladesh: Frozen food exporters demand cut in corporate tax by Refayet Ullah Mirdha June 22,2020   |  Source: The Daily Star

Exporters of frozen food products, especially shrimp, have demanded that the government reduce corporate tax from 32.5 per cent to 15 per cent in the proposed national budget to help the sector recover from a significant fall in international sales. The demand for frozen shrimp and similar luxury food items has fallen drastically in western countries, Bangladesh's main export market, due to the ongoing novel coronavirus pandemic. Not only did this lead to a decline in shipments but also got international buyers, who were mostly European, to either return or cancel several consignments of frozen food items amounting to Tk 460 crore in value.

Traders have been exploring Russia and China as potential export destinations over the past few years but the Covid-19 outbreak has laid waste to consumer demand in both nations. In order to recoup their losses, exporters attempted to borrow funds from the banking sector, using the returned consignments as collateral. However, the financial institutions did not accept their proposal. Besides, with international markets yet to reopen due to lockdowns aimed at curbing the spread of coronavirus within their countries, there is uncertainty over whether buyers will pick up their orders anytime soon.

Considering all these issues and the

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