March 15, 2004

Pakistani Poultry Industry Want Tax Exemptions As Bird Flu Compensation

The Pakistani poultry association will ask the government for tax exemptions for a period of five years to compensate for losses the industry suffered during the recent bird flu scare.

"The poultry industry would demand complete tax exemptions since the industry had suffered over Rs 5 billion loss due to the spread of rumors of virus in chicken which was stated to be bird flu," Dr Mohammad Amjad, former chairman of Pakistan Poultry Association and president Pakistan Veterinary Medical Council, told Daily Times.

Dr Amjad said there are many issues that would be raised at the Pakistan Poultry Board meeting to be held on March 16. Sardar Yar Mohammad Rind, the federal minister for food and agriculture, will chair the meeting.

"Our foremost concerns would be of taxes and duties levied on the poultry industry, since the industry needs tax exemptions for a minimum period of five years for it to revive from the losses it suffered recently," he said.

"We would demand complete abolition of six percent withholding tax being levied at the import stage on various imports of machinery and equipment for the industry," he said.

Dr Amjad said they would also demand reduction in customs duty from 25 percent to a minimum of five percent on the import of feed ingredients and raw material imported for the preparation of the feed.

"We would also demand abolition of 15 percent sales tax levied by the government on the import of medicines that are used in the feed preparation and also on the medicines raw material which is being imported for the preparation of medicines and vaccines," he said.

Foreign bans: Mr Amjad said apart from the loss the industry had faced from the domestic market, it had also suffered heavy losses after the governments of Afghanistan and Middle Eastern countries imposed bans on the import of birds from Pakistan.

"Around 150 trucks full of live birds that to go to Afghanistan daily but now after ban it has stopped, and we would urge the government that it should raise this issue with the respective governments of the importing countries to lift the ban," Dr Amjad said.

He said the industry would also seek the government's firm support to further clear the position of the poultry industry regarding the virus, since it has been cleared that it is not in Pakistan, but still consumers are afraid to buy chicken thus forcing the producers to sell at much below prices almost 50 percent of the cost of the chicken.

He said the poultry industry requires strong measures from the government for its survival and added that they expect that the government would fulfill their demands.

The Pakistan Poultry Board meeting would be chaired by agriculture minister and attended by officials of concerned ministries and departments apart from representatives from the poultry industry.