May 18, 2011

Pakistan's poultry feed tax to double chicken prices

The Pakistani government's 15% sales tax on poultry feed would double the price of chicken, claims Abdul Basit, former chairman of the Poultry Association.

In the budget proposals of poultry industry, Abdul Basit said that 15% sales tax on poultry feed would also jack up the prices of processed chicken that is already consumed less than 5% in Pakistan. He said that the government should make a difference between the duty on grand parent poultry stock and duty on its finished goods that has been implemented at the same rate at present.

Abdul Basit 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 raw material for domestic industry should be free from all types of import duties.

He said that to encourage local production, higher rate of taxes and duties should be imposed on the import of finished or semi finished goods.

In his budget proposals, he suggested that 100% duty be imposed on the import of all kinds of chicken meat - frozen or processed.