LAHORE: Dr Muhammad Mustafa Kamal, Chairman Pakistan Poultry Association, has expressed the apprehensions that prices of poultry products will be increased by 25 percent as the government has imposed overall 25 percent duties and taxes on all kinds of poultry feeds in the budget 2015-16.
The new budget has demoralised the poultry farmers because the government has slapped 5 percent sales tax on all types of poultry feeds while 10 percent duty has been imposed on import of soybean meal along with 10 percent 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.
Dr Kamal said that 25 percent tax on poultry feeds will deprive the poor of cheapest source of animal protein at affordable price. If the industry passes on this 25 percent 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 percent 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 UK where consumption of protein is 79-95 gram per capita per day.
Dr Kamal 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, is also providing substantial support to the poultry industry through its Livestock Department. The 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.
With the continuous depletion of supply of red meat, poultry is the cheapest available animal protein for the masses, which constitutes 35-40 percent 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.
