March 10, 2009

The Pakistan Poultry Association (PPA, Northern Zone, has urged the government to exempt poultry producing units from Goods & Services Taxes (GST) and withholding tax.

The Water and Power Development Authority (Wapda) has imposed 10 percent withholding tax and 15 percent GST on the general electric supply to poultry farms, hatcheries and breeding farms, which has increased the overall production costs, according to PPA.

Since GST is exempted for poultry products, the producers cannot pass it to the consumers which will increase the financial burden on farmers.

PPA also called for reassessing the abolishment of any taxes levied on the poultry industry. Interest-free working loans up to Rs1 million should be given and the government should pick up the mark-up as an incentive to small an medium-sized poultry farms, the PPA said.

PPA also said the government should provide special rebate for advertisements that promote the consumption of poultry products.