FBR to present taxation structure on livestock, poultry products

The Federal Board of Revenue (FBR) will present the taxation structure on livestock and poultry products on import and local stages to assess any impact of taxes on recent price hike of livestock and poultry products to eliminate undue profit margin.
Sources said that the FBR will also present the relief measures granted to the said sectors in last budget. In this connection, a meeting has been scheduled at Ministry of National Food Security & Research, Pak Secretariat today on price stabilisation of livestock and poultry products. For example in last budget, the concessionary rate of customs duty on import of machinery for the dairy, livestock and poultry sectors was reduced from 5% to 2%. (Sr. No, 1(F) of Part-I of the Fifth Schedule) of Customs Act, duty was reduced from 5% to 2% on the import of incubators and brooders (POT codes 8436.2100 and 8436.2900) for poultry sector. (Part I, Table F of the Fifth Schedule) and customs duty was reduced from 5% to 2% on the import of animal feed stuffs machinery (PCT code- 8436.1000). (Part I of the Fifth Schedule). Whereas, live chicken stock (PCT code 0105.1100) and hatching eggs used for breeding of broilers (PCT code 0407.1100) were subject to 11% customs duty and customs duty the import of on Birds eggs (not in shell) (PCT codes 0408.9100 arid 0408.9900) has been subjected to 16% to bring these items at par with similar goods. Sales tax on import of machinery related to dairy sector was reduced from 17 to 5 percent.
According to sources, a meeting of price monitoring committee was held on January 6, 2017 under the chairmanship of Finance Minister Ishaq Dar. The federal minister reportedly expressed serious concern over increase in price of livestock and poultry products (beef, mutton, milk, chicken and eggs, etc). Federal Ministry of National Food Security & Research has been directed to take corrective measures so as to eliminate undue profit margin.
Sources said that the stakeholders are expected to attend the meeting with concrete proposals aiming to control the price hike of livestock and poultry products. The meeting will be attended by secretary interior, Federal Board of Revenue officials, chairman Pakistan Dairy Association, Lahore, chairman Corporate Dairy Farmers Association of Pakistan, Lahore, chairman Pakistan Poultry Association (PPA) (Central), Islamabad, and chairman All Pakistan Meat Exporters & Processors Association, Lahore.