Expert warns against levying tax on poultry sector

Levying of 15 percent General Sales Tax on rupees 200 billion poultry industry, providing jobs to 1.5 million people, will not only jack-up rate of unemployment, but would also change export potential in to an import liability so the government should immediately drop any such plans aimed at destroying this important sector.
This was observed by former Chairman Poultry Association Abdul Basit, in a statement issued here on Monday. He said that levy of sales tax on poultry feed which is more than 70 percent of cost will result in 100 percent increase in the price of poultry meat. This will lead to the collapse of poultry industry, being perishable item governed by only demand and supply irrespective of cost of production. He warned that levy of sales tax on the newly started poultry-processing sector will 'wipe off this industry in its infancy'.
He observed that in Pakistan, currently only three percent of poultry meat is being processed. International Halal food market is of US $1,200 billion and Pakistan is ideally placed to benefit from this market but currently has no share. Poultry can only be exported if it is processed and packed. Abdul Basit informed that poultry meat provides a check on the prices of mutton and beef. He further said that production of mutton/beef increased by three times whereas poultry meat increased by 14 times during the last 30 years. Poultry meat provided six percent of total meat in 1980 now it is fulfilling 33 percent of total meat requirement, he added.
He said everyone clearly remembers that at one time poultry meat was three times the price of mutton, now it costs only 1/4th of mutton. This clearly shows how poultry meat helps in providing low cost animal protein to the people. He was of the view that Pakistan did not import poultry products in its history due to sufficient domestic production. Similarly, this sector provides jobs to more than 1.5 million people and there are 25,000 poultry farms in the country.
Former chairman PPA pointed out that government had imposed GST on poultry sector in 1996, however, it had to take the decision back as more than 40 percent of the production was reduced and majority of the people became jobless at that time. Therefore, to avoid such situation, government should consider its decision. He demanded government to give tax exemption to the poultry sector as did by other countries.