POULTRY NEWS

POULTRY SECTOR DEMANDS TAX RELIEF ON INPUTS TO KEEP PRICES DOWN

“Prolonged prevalence of Covid-19, disruption in global and local supply chain including import of poultry grandparents, market speculation, taxes and duties on poultry feed ingredients are the major contributors to price hike of local poultry items,” Chairman PPA said. Global supply chain of the poultry industry also impacts the poultry prices in Pakistan for being linked with the global supply chain and importing inputs from especially European Union and Middle East,” he added. In budget 2021-22 the government has provided tax relaxation on the nine poultry items from 3%-9% for facilitating the poultry sector. Besides the pandemic, the poultry sector had also suffered huge losses due to other multiple factors during the past few years. He said sales tax was increased by 10 to 15% on 53 poultry inputs and 15% on different medicines in budget 2021-22 which could lead to the price hike in near future. Moreover, different levies have also been increased on the raw material used in the poultry sector. He proposed that the sales tax on poultry items especially chickens and eggs must be lowered at zero per cent for curtailing the price hike. He added that Pakistan’s exports are negligible due to tough competition abroad and rising cost of raw material in the country. The country imported most of its raw material, including feed ingredients such as soybean and other chemicals and vitamins. “Our main global and regional competitors such as China, India, Brazil, Argentina and many others are enjoying government protection and have a comparative advantage,” he said. Pakistan’s government wants to enhance exports for which the poultry sector needs to be facilitated. At least we should be given duty drawbacks in order to minimize our input cost”, he added. “There is huge potential in Pakistan as the poultry sector is growing at 5-10 per cent per annum,” “but the sector faces cycles of growth and then a long period of depression which compels farmers to sell their products below the cost of production.” He warned that egg and poultry prices might rise about 10 per cent in the near future because of higher demand, less supply and increasing feedstock costs.