The rates of poultry products are going to increase sharply, as the recently announced federal budget has proposed imposition of huge taxations on this major chain of food items despite the claim of the government that no tax has been imposed on kitchen goods. 

The budget 2014-15 has suggested the imposition of 5% duty on Poultry Raw Material Import, 5% duty on import of soybean meal and 5% sales tax, which would hit not only general public in terms of high prices of food items but also the poultry industry in Pakistan which is providing chicken and eggs on very nominal prices as compared to mutton and other protein oriented meat.

Pakistan Poultry Association (PPA) Northern Zone Chairman Raza Khursand expressed dissatisfaction over the imposition of 5 per cent levy on import of raw material, 5 per cent duty on import of soybean meal and 5 per cent sales tax as recommended in current year fiscal budget. He said that proposed taxes on poultry products in fiscal budget 2014-15 were unjustified.

 He said that that in all developed and under-developed countries including neighbouring India there is not taxation on food items and even in Pakistan the Agriculture sector is exempted from tax.

Raza Khursand said that chicken and eggs are the consumable food items of poor and rich persons and traditionally people prefer chicken as compared to other meat. The taxation on poultry sector would spoil its stature and especially the small poultry formers would compel to close down their poultry farms.

and its byproducts created business opportunities to the people.

He said most of the poultry farms are situated in rural areas where this industry not only played its role for infrastructure development but also provided local community job opportunities.

Chairman PPA (NZ) said it is impossible to think that the prices of chicken and eggs would remain same after taxation on poultry industry because the prices of poultry feed would definitely increase and no one in this business can sustain without increase of the prices of poultry products .

Raza Khursand said it is matter of fact that despite price hike and soaring inflation the chicken and eggs were still available in the open market at Rs200/- per kilogram and eggs Rs.70-75/- per dozen. He said that poultry industry has contributed a lot in the national economy by fulfilling the requirement of meat and provided missions of jobs in this sector. Similarly, it also extended a helping hand to a number of other allied industries

He said this industry presently providing 1.5 million job opportunities annually and if government does not consider the request it would create hardships for poultry farmers. He said if government to provide chicken and eggs to people on cheaper prices, it is imperative to withdraw the proposed taxes on poultry industry.

He appealed to the Prime Minister of Pakistan Muhammad Nawaz Sharif and Federal Minister for Finance Ishaq Dar to reconsider the proposal of poultry taxation and duties on poultry raw material import.