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Ministry warns FBR: poultry/dairy products at risk of global execution

The Federal Board of Revenue (FBR) has been warned by the Ministry of National Food Security that Pakistani goods will be shut out of the global market due to the high taxes, which include sales tax on the import of chicken and materials for poultry/animal feed.

In this regard, the Ministry of National Food Security has contacted the FBR and the Finance Ministry to request tax relief for the poultry and dairy industries.

The import and export of animals and products related to animals, including semen, embryos, compound animal feed, ingredients of poultry/cattle feed, soybean, meals/seed, oil cake of cotton seed, poultry/cattle feed premix, by-pass fat, calf milk replacer, mineral, machinery and its spare parts used in the animal industry, branded and packaged poultry meat, and value-added products, are subject to taxes, the ministry claims.

The implementation of a 17 percent sales tax, a 3 percent regulatory charge, and around 7-8% of the value has dramatically raised production costs and rendered local commodities mostly uncompetitive in global markets. Pakistani produce would be in danger of being shut out of foreign markets like those in the Middle East and Gulf nations if this trend persisted.

In addition, the ongoing flooding and devastation of infrastructure caused by the torrential monsoon rains will have a negative impact on the supply chain of animals and animal products, leading to food shortages and insecurity as well as further increasing the costs of animal-related goods in the nation.

It is strongly advised that the rate of taxes and duties on products of animal origin be reviewed, exempted, or decreased back to the position executed before the introduction of the current tax regime and to the extent granted, taking into consideration the aforementioned explanation: It has been suggested that the 17 percent sales tax on imported Grand Parent Chicks (GPs) be decreased to zero percent.

Lower production costs will result in lower market pricing for consumers for chicken meat and eggs.

It has been suggested to remove the 17 percent sales tax on the components of poultry and animal feed.

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