LAHORE: Industry representatives and other stakeholders have urged the government to reconsider GST hike on veterinary medicines, feed.
Delegations from the Veterinary Pharmaceutical Association, farmers, pharmaceutical stakeholders, traders, Punjab Poultry Association, manufacturers, and importers mad this demand in a meeting with Lahore Chamber of Commerce and Industry (LCCI) Vice President Adnan Khalid Butt here at LCCI on Wednesday.
The delegation included President Punjab Traders Association Tariq Javed, Chairman Punjab Traders Association Rana Qasim Iqbal, Co-conveners of Veterinary Pharmaceutical Association Nadeem Yousaf and Dr. Saleh Mahmood, Secretary Veterinary Pharmaceutical Dr. Majid Ijaz, former Chairman Rai Mansab Ali Kharal, President Tollinton Market Javed Iqbal, President Punjab Poultry Association Tariq Javed, Vice Presidents PPA Mian Aqeel and Chaudhry Shakeel, Chairman Rate Committee Mehar Irfan, Rana Qasim Iqbal, Mian Shehbaz, and others.
The representatives of the delegation informed the Vice President about the issues facing the veterinary pharmaceutical sector, stating that currently, more than 22,000 pharmaceutical companies are operating in the country. In the recent budget, the government has increased the General Sales Tax (GST) on feed from 10 to 14 percent, while a proposal has been made to increase the GST on veterinary medicine to 18 percent. The participants demanded the immediate withdrawal of the proposed increase, fearing that if not addressed, the poultry rates would double, putting them out of reach for the public. They mentioned that in the past, feed and veterinary medicines were zero-rated for GST. They argued that this increase would escalate their production costs, causing Pakistani exporters to lose markets like Afghanistan to India and other countries.
They explained that this would diminish the potential of Pakistani exporters and halt farm activities, leading to employment issues. They also highlighted that the 18 percent tax is imposed on every item related to poultry.
They emphasized the critical role this industry plays in meeting the country’s nutritional needs, with millions of businesses and a significant economic cycle linked to this sector.
LCCI Vice President Adnan Khalid Butt said that Lahore Chamber is also against various taxes imposed in the Federal Budget 2024-25. He mentioned that the new budget proposes a 10 percent tax on poultry and dairy feed, and the implementation of an 18 percent GST would lead to an additional Rs50 per liter for packaged milk, besides increasing the prices of loose milk and meat thus contributing to inflation.
If these new taxes are not withdrawn, it could damage the poultry industry and a 70 percent reduction in the dairy sector.
It is estimated that the per capita protein intake in our country is only 44 grams per day, compared to around 140 grams per day in other developed countries. Imposing a new tax on poultry will worsen the situation. Similarly, 40 percent of children in Pakistan have stunted growth, 29 percent are underweight, and 18 percent are malnourished. Of the over 240 million Pakistanis, around 90 percent consume unsafe milk, while only 10 percent consume packaged milk. Considering these statistics, the government should revoke this decision, he concluded.
