News Column

Duty on poultry raw material imports in budget flayed

June 5, 2014

The imposition of 5% duty on poultry raw material import, 5% duty on import of soybean meal and 5% sales tax as recommended in current year fiscal budget would give a setback to National Poultry Industry in Pakistan which is providing chicken and eggs on very nominal prices as compared to mutton and other protein oriented food items.

This was stated by Dr. Muhammad Aslam, Chairman Pakistan Poultry Association (PPA) while addressing a gathering of poultry formers who express grave concern over the proposed taxes on poultry products during Annual Budge 2014.

Dr. Aslam said it is matter of fact that despite of price hick the chicken and eggs were still available in the open market at Rs. 150/- per Kilogram and eggs Rs.75/- per dozen. He said this rate has been decreased from Chicken at the Rs. 190/-per KG chicken and eggs from Rs. 112 per dozen.

Dr. Aslam said that poultry industry has contributed a lot in the national economy by fulfilling the requirement of meat and provided missions of jobs in this sector.

Similarly, it also extended a helping hand to a number of other allied industries and its by-products created business opportunities to the people. He said most of the poultry farms are situated in rural areas where this industry not only played its role for infrastructure development but also provided local community job opportunities.

He further said that that in UK and other developed countries there is not taxation on food items and even in Pakistan the Agriculture sector is expiated from tax.

Dr. Aslam said that chicken and eggs are the consumable food items of poor and rich persons and traditionally people prefer chicken as compared to other meat. The taxation on poultry sector would spoil its stature and especially the small poultry formers would compel to close down their poultry farms.

Chairman PPA said it is impossible to think that the prices of chicken and eggs would remain same after taxation on poultry industry because the prices of poultry feed would definitely increase and no one in this business can sustain without increase of the prices of poultry products.

He appealed to the Prime Minister of Pakistan Muhammad Nawaz Sharif and Federal Minister for Finance Ishaq Dar to reconsider the proposal of poultry taxation and duties on poultry raw material import.

He said this industry presently providing 5 thousand job opportunities annually and if government does not consider the request it would create hardships for poultry farmers. He said if government to provide chicken and eggs to people on cheaper prices, it is imperative to withdraw the proposed taxes on poultry industry.

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Source: Daily Messenger (Pakistan)

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