The poultry prices are bound to increase in the country after imposition of overall 25 percent duties and taxes on all kinds of poultry feeds in the Budget-2015-16. According to Mustafa Kamal, the chairman of the Pakistan Poultry Association, the budget has demoralised and depressed the poultry farmers because the government has slapped 5 percent sales tax on all types of poultry feeds. Besides, 10 percent duty has been imposed on import of soybean meal along with 10 percent sales tax on it which are set to damage this industry in the country. Kamal says that a heavy duty on import of soybean meal is illogical as it is raw material and is not produced in the country.
Poultry is a major industry in the world and Australia is one of the leading exporters of poultry products, especially to the Gulf countries. Pakistan can also earn precious foreign exchange if incentives are given to the poultry farmers in the form of taxes and duties. Instead, up to 25 percent tax on poultry feeds will deprive the people of the cheapest source of animal protein at affordable price within the country. If 25 percent additional cost is passed on to the consumers, they will be unable to purchase the expensive poultry products and if industry absorbs itself the higher cost, it will put the survival of this industry at stake owing to ever-increasing cost of production. Kamal says that the government’s move to tax the food products will give a blow to food security in the country where around 66 percent people are deficient in protein. He says that the animal protein shortage depicts a grave situation when it is compared with the protein intake of various developed countries such as the United States, Canada, Germany, France, Japan and Britain. The protein consumption in those countries is 79 to 95 grams per capita per day.
As read meat is expensive and its production is also not enough to meet the growing demand at local level, poultry is the cheapest available animal protein for the masses which currently constitute 35 to 40 percent of the total meat production in the country. Poultry sector is said to be one of the largest agro-based segment having an investment of Rs. 700 billion and despite all constraining factors, the growth rate of this sector is 10 to 12 percent per annum in the country. The government should give incentives to this industry to make it one of the vibrant industry in the world, catering to the poultry needs of the half of the world.
