Expert warns against levying tax on poultry feed

Former Chairman Pakistan Poultry Association (PPA), Abdul Basit Monday urged the government to avoid implementation of 15 percent sales tax on poultry feed as it would not only double chicken prices but a cheap source of finest protein would also be out of the reach of common man.
Giving proposals for next budget regarding poultry industry, Abdul Basit said that 15 percent sales tax on poultry feed would also jack up prices of processed chicken that is already consumed less than five percent in the country. He said that government should make a difference between the duty on grand parent poultry stock and that which is imposed on its finished goods, implemented at the same rate at present.
He suggested that there should be a complete ban on import of any item, which is being produced or can be produced locally. Every item, which is a raw material for domestic industry should be free from all types of import duties. He said that in order to encourage local production, higher rate of taxes and duties should be imposed on import of finished or semi-finished goods.
PPA former chairman, in his budget proposals, suggested that 100 percent duty be imposed on import of all kinds of chicken meat, frozen or processed. Government has increased turnover tax from 0.5 percent to one percent which is very high and unjustified. It is proposed that if it is not brought back to zero percent, it should be the final discharge of tax liability. Then there should be no requirement for further checking or adjusting the record of business entity, he maintained.
Sales Tax Regime: He proposed that there should be no Reformed General Sales Tax (RGST) on any food item and their raw materials, pharmaceutical items and their raw material. There should be no refund system of GST and it should be only one percent, he added.
Rationalisation of Withhold-ing Tax Regime Abdul Basit observed that a major portion of Federal Board of Revenue (FBR) targets is being met through withholding tax collections. WHT staff is being hired and technical staff is being maintained for the tax deduction and depositing it into banks and filing tax returns. Furthermore, they have to maintain tax record separately. WHT agents have to bear all expenses for this entire collection/deposit exercise being done on the behalf of FBR.
To meet these expenses incurred thereon, it is proposed that government should pay a certain percentage of WHT collection to these agents. This will encourage them to collect the tax more efficiently. About the much-needed revenue collection, former PPA chairman said there should be no probe for investment if made in industry, especially in the corporate sector. This will give direction to the money, which is being wasted into non-productive channels and if invested in the productive industrial sector, it will create more jobs and more revenue for times to come, he added.
He further said that every business entity, engaged in any business or in any other economic activity, must be registered with any trade body or chamber, under Trade Organisation Ordinance 2007. So, automatically, every business entity will have to have National Tax Number and to file its tax return/statement regularly to renew its membership with trade body. Government authorities should check only the membership of a trade body then we will not need any 'controversial RGST', he said.