PPA Chief Urges Govt to Avoid Imposing ST on Poultry Items
Dr Abdul Karim, Vice Chairman PPA (NR) in a press briefing to a electronic and press media said that Pakistan Poultry, which supplies prime quality protein food in the form of poultry meat and eggs, at a very affordable price.
The prices of chicken products are determined purely on market supply demand basis. This is how at times the prices of chicken products are below the input costs incurred by the farmers and they are compelled to sell their commodity at a price lower than their cost of production and so bear the losses.
This phenomenon of low and high prices help farmers to achieve an average yearly price, which may be slightly better than his input cost, where he is able to make some profit provided his efficiency stays good.
Recently, Federal cabinet approved a supplementary budget in which they withdrew the exemptions on sales tax and levy new duties as part of fiscal tightening measures aimed at winning funding from the International Monetary Fund (IMF).
The government has proposed to impose 17 percent sales tax worth Rs.343 billion on over 150 items including Grand Parent Chick & Hatching Eggs, Machinery under use of Poultry Sector, Branded Chicken Meat, Raw Material of Pharmaceutical and Sunflower/Canola Seeds.
Mentioning the way forward he suggested the government to improve and give favourable business climate to poultry sector.
He also demanded to remove sales tax and import duties on all above mentioned items, in an effort to reduce input cost.
Imposition of 17 percent Sales Tax on poultry items, will have a serious impact on cost of production and will contribute once again to the loss of farmers, which will result in reduced production and ultimately in the long term increase in prices of poultry products would have worst impact in production and market prices.
The chairman requested the government not to impose Sales Tax on above mentioned items and make every effort to provide relief to the poultry industry.
He thanked the print and electronic media for always supporting the Pakistan Poultry Industry in every difficult hour and conveying the voice of PPA to the government houses.— PRESS RELEASE