PPA demands withdrawal of Increase in Sales Tax on Poultry Feed Ingredients
PPA demands withdrawal of Increase in Sales Tax on Poultry Feed Ingredients | پولٹری فیڈ اجزاء پر سیلز ٹیکس میں اضافے کی تجویز واپس لینے کی اپیل.
The Pakistan Poultry Association has appealed to withdraw the proposal to increase sales tax on poultry feed ingredients from 10 to 17 percent in the budget 2021-22. The association, while thanking the government for reducing import duties on feed raw materials and medicines, said that increasing sales tax on poultry feed ingredients will negate the effect of reducing duties and will increase the price of poultry feed, which will increase the overall cost of production of poultry products. In this regard, the association has appealed to the government through advertisements in newspapers.
The association says that the share of imported ingredients in the cost of poultry feed is 60-68 percent. The prices of poultry-related production ingredients have increased in the international market, along with the depreciation of the rupee and increase in freight charges. Soybean meal, which is an essential component of poultry feed, is used in 20-30 percent of the feed. The world price of soybeans was $355 in May 2020 and $650 in May 2021. The increase in sales tax on soybeans from 10 to 17 percent, including import duties, will increase the total impact to 22.85 percent.
The association says that although there is no sales tax on chicken and eggs, taxes on production inputs will have an impact on their cost of production, which will have to be borne directly by the consumer. Although the prices of poultry products are determined under the principle of demand and supply, an increase in the cost of production of poultry products will lead to a decrease in production due to losses and this will bring the product to the market. The decrease in supply will increase the prices of chicken and eggs. The association says that the poultry sector is a successful example in Pakistan’s business sector with an annual growth of 8-10 percent. This is due to the government’s non-interference in production, suppliers and prices.
Regarding the increase in chicken prices, the association says that the 2019-20 lockdown, anti-poultry media campaign and closure of events led to a decrease in the demand for chicken. This also reduced the demand for chicks for broiler farming. On the other hand, since chicks were being produced at a normal pace, there were reports of excess chicks being released into the field.
In view of these circumstances, broiler companies had to reduce their breeding stock. On the other hand, when the demand for broilers increased due to the return to normalcy, the supply of broilers decreased due to the decrease in chicks. Further, the sudden attack of the disease reduced production. This temporarily increased the price of poultry products. The increase in production is reducing the price. The association says that the prices of poultry products are still very low compared to inflation.
The association has emphasized that various opposing media and social media campaigns will drive the prices of poultry products below the cost of production, which will hamper the growth of the sector. The association has appealed not to increase the sales tax. It has also appealed to the Finance Minister to consult stakeholders on the impact of the increase in the price of poultry feed on the prices of poultry products in the future and the strategy for price stability.
فیڈ کے اجزاء کی قیمتوں میں اضافہ، ڈاکٹر ارشد ظفر کا وزیر اعظم کے نام خط.
پاکستان فیڈ سٹفس ڈیٹا بیس ۔۔ جانوروں کی خوراک میں استعمال ہونے والے اجزاء کا غذائی تجزیہ
بیکری چُورے کا پولٹری اور ڈیری فیڈ میں استعمال، کن پہلوؤں کو مدنظر رکھنا چاہئے؛ خصوصی تحریر
