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PPA Opposes Tax on Poultry Feed

by 5m Editor
17 November 2010, at 9:19am

PAKISTAN - The Pakistan Poultry Association (PPA) is opposing the levy of general sales tax (GST) under a new bill.

"The amendments proposed in the Sales Tax Act of RGST Bill 2010 would result in the withdrawal of exemption of sales tax on poultry feed and its raw materials and also on all other inputs of poultry feed like vitamins, minerals, amino acids etc, which will increase the consumer price by a minimum 15 per cent and inflation added price by almost 35 to 40 per cent," stated Khalil Sattar, Chairman Pakistan Poultry Association.

Daily Times reports Mr Sattar saying that if the bill is passed by the Assembly, it would increase the price of poultry feed because of levy of GST at 15 per cent by approximately 5,340 rupees (PKR) per tonne and an increase of additional amount of PKR250 per tonne because of withdrawal of exemption on other inputs of feed. The total increase, being PKR5,600, not taking into account the proposed increase in fuel, electricity and the additional cost of load shedding, will have to be paid by the farmer whose cost will increase substantially.

He said that feed is approximately 70 per cent of the cost component, and the proposed increase will result in PKR25 per kilo, that of eggs by PKR12.50 per dozen and day-old chicks by PKR4. Another PKR2.50 would increase on each of the items due to withdrawal of Sales Tax exemption on medicines and apoplectics. Thus, the snowball effect of the increase in chicken meat will be minimum PKR25 plus PKR4 plus PKR2.50, total being PKR31.50, which ultimately nobody but the consumer will have to pay, according to Daily Times.