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Producers Request Product Subsidy

by 5m Editor
27 July 2009, at 8:29am

PAKISTAN - The national producers' association is demanding a subisdy on poultry products.

The Pakistan Poultry Association (PPA) has demanded the government to forward 25 per cent freight subsidy on export of poultry products on all airlines, according to The News.

A letter written by central Chairman PPA, Abdul Basit, to Chief Executive Trade Development Authority of Pakistan stressed that freight subsidy on export of broiler and hatching eggs should be given on all airlines so that export could be carried out. The letter said that currently, this incentive was being given on PIA flights only, which was not sufficient.

It was also recommended that a flat rebate of 40 per cent should be allowed on all exports of poultry products as it was difficult to calculate duty drawbacks and taxes on poultry products particularly when the producers of its inputs were different entities such as poultry feed, vaccines and medicines.

The PPA chairman also stressed the need to charge all poultry operations under agricultural power tariff since poultry farming and breeding operations fell under the heading of agriculture.

"The poultry should be exempted from levy of sales tax on electricity bills as it is a food production sector and is exempted from payment of sales tax," he told The News, adding that it neither fell in the regime of sales tax nor was it registered with the Sales Tax Department.