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Feed Dealers Leave Chandigarh in Tax Protest

by 5m Editor
4 January 2010, at 7:36am

INDIA - Feed sales companies in Chadigarh are threatening to move to other regions following the imposition of a four per cent value added tax on poultry feed and supplements.

The administration's decision to impose a four per cent Value Added Tax on poultry feed and its supplements has affected the poultry industry, with industrialists planning to move out of the city to escape the tax.

According to Indian Express, submitting a memorandum to UT Administrator General (Retd) S.F. Rodrigues, the Chandigarh Poultry Medicine and Supplements Dealers' Association stated that poultry feed and feed supplements are tax-free in all the states of the country.

The memorandum states: 'The dealers of poultry feed and its supplements are also dealing in poultry medicines and vaccines and are paying a sizeable tax at the rate of four per cent to the administration. In case, four per cent VAT on poultry feed and its supplements is not withdrawn, dealers will shift to neighbouring states of Punjab, Haryana and Himachal Pradesh. This would result in loss of revenue to the administration, already being paid by the dealers on poultry medicine and vaccines.'