LAHORE - The poultry products prices, which are already going up due to short supply, will register a jump of at least 25%, as the government has imposed overall 25% duties and taxes on all kinds of poultry feeds in the budget-2015-16.

The new budget of next fiscal year has demoralized and depressed the poultry farmers because government has slapped 5% sales tax on all types of poultry feeds while 10% duty has been imposed on import of soybean meal along with 10% sales tax on it. The heavy duty on import of soybean meal is not logical because it is raw material of the poultry industry, which is not produced in the country.
The poultry industry experts said that 25% tax on poultry feeds will deprive the poor of cheapest source of animal protein at affordable price. If the industry passes on this 25% additional cost to the consumers they will be unable to purchase the expensive poultry products and if industry absorbs itself the higher cost, which is already fighting for the survival owing to ever-increasing cost of production, it will collapse. The government’s move of taxing food products is in fact a blow to food security in the country where around 66% of the people are deficient in protein. The animal protein shortage seems grave especially when it is compared with the protein intake of various developed countries like U.S.A. Canada, Germany, France, Japan and U.K where consumption of protein is 79-95 gram per capita per day.
They said that despite high consumption of protein the USA is still providing subsidy of over one billion dollars per day on food security while the poor countries like Thailand are also providing substantial support to the poultry industry through Livestock Department. PPA chairman said that poultry sector of Pakistan is making a tremendous contribution in bridging the gap between supply and demand of animal protein requirements but now eggs and chicken will disappear from the scene after the current move of taxation.
Pakistan Poultry Association north zone chairman Dr Mustafa Kamal observed that with the continuous depletion of supply of red meat, poultry is the cheapest available animal protein for the masses, which constitutes 35-40% of total meat production in the country- an effective check upon the spiraling animal protein prices. Poultry sector is one of the largest agro based segment of Pakistan having an investment of Rs.700 billion. It is worth mentioning here that despite all constraining factors the growth rate of this sector is 10to 12% per annum. He appealed the government to withdraw the decision of taxing poultry feeds to keep the cheapest source of animal protein in the range of poor, which is already major stumbling block in price increase of red meat.