Sales tax on feed could hurt Pakistan's poultry sector

The Federal Board of Revenue plans to impose sales tax on poultry feed, a move that could cause serious damage to Pakistan's poultry sector and increase the prices of meat and eggs.

In a letter sent to the Ministry of Food and Agriculture, the Pakistan Poultry Association (PPA) said the poultry industry has bridged the gap between supply and demand of animal protein, keeping check on prices of mutton and meat.

Consisting of 285 hatcheries, 141 feed mills and more than 25,000 layer, broiler and breeding farms, the poultry sector is an important part of Pakistan's agriculture industry and plays a key role in food security, according to the PPA.

PPA chairman Dr Muhammad Aslam said feed accounts for 60-70% of the total cost of poultry production. He said the government had not imposed sales tax on poultry feed to keep the prices of chicken meat and eggs at competitive level.