October 1, 2013

The Pakistan Poultry Association requested that poultry goods, being the agricultural product, be exempted from withholding tax under Income Tax Ordinance 1979.

Presenting a set of recommendations to the federal government, during a ceremony of the International Poultry Expo (IPEX)-2013, the chief organiser Raza Mehmood Khursand, observed that poultry sector should not be strangulated with oppressive and irrational taxes in a country where per capita consumption of meat is only 6.6 kilogrammes and 55 eggs annually. Whereas as per standard requirement, 25-28 kilogrammes meat and 250-300 eggs are required to be consumed by each person. Therefore the country is already consuming less protein as per required standards.

In order to enhance production as well as usage of the 'cheap source of animal protein', he requested that poultry producing units being exempted from payment of sale tax be included in the classes of industry that are exempted from the charge of sale tax and withholding tax on electricity bills of the poultry producing units.

Khursand recommended that duty should be imposed on import of grand parent stock for broiler and for layer; parent stock for layer; parent stock for broiler; broiler day-old chicks and hatching eggs to produce broiler chicks and chicken meat unprocessed, processed and further processed/frozen.

He said that turnover tax for the poultry sector is not viable, therefore the Federal Board of Revenue (FBR) issued a notification to reduce turn over tax for poultry sector but no notification has been issued in this regard.

Khursand said that the federal government must take note of each problem faced by the poultry sector and efforts may be made to resolve these problems as soon as possible.

Addressing the concluding session of the IPEX, Federal Minister for National Food Security and Research, Sikandar Hayat Khan Bosan said that government is committed to resolve the issues of poultry industry and enhance export of halal processed food as poultry sector can play an important role in uplifting of economy.

Acknowledging the role of poultry industry in job creation and strengthening the economy, he said that government would support the industry as thousands of people are attached and it ultimately affects the lives of citizens.

Earlier, he visited the Federation of Pakistan Chamber of Commerce & Industry (FPCCI) regional office and said that government was taking measures to increase the production of wheat, rice and other eatables to make them affordable for the common consumer.

Sikandar Bosan said the food security policy was being finalised and would be forwarded to all the trade bodies. Regarding cotton policy, he said that the policy would be approved probably in January 2014.