Pakistan Poultry Association (PPA) has urged the government to exempt the poultry producing units from the General Sales Tax (GST) and withholding tax levied on the electric supply to these units. A PPA (Northern Zone) delegation led by its Chairman Khaleeque Arshad made this demand during a meeting with the Secretary Livestock and Dairy Development Punjab, Muhammad Jehanzeb Khan.
The delegation said that Wapda has imposed 10-percent withholding tax and 15-percent GST on the general electric supply to poultry farms, hatcheries and breeding farms, which has increased overall cost of production of broiler and eggs.
Since poultry sector is exempted from GST on poultry product, thus producer cannot pass on GST to the consumers, which causes heavy increase in cost of production, the delegation observed. Other members of the delegation were Dr Mustafa Kamal, Dr Abdul Kareem Bhatti, Dr Ghulam Mehboob, Mir Aurangzeb Alam and Zonal Secretary PPA Javaid Bukhari.
The delegation said that the industry suffered huge losses during 2006 to 2008 due to bird flu/over production so the small and medium size poultry farmers is given interest free working loans up to Rs One million as incentives. If all interests are to be charged then it was recommended that 6-8 percent loan on working capital be sanctioned for the poultry farmers for one year, so that collapsing industry could get some support to stand upon its feet again.
Secretary Livestock & Dairy Development Department Muhammad Jehanzeb Khan promised to resolve problems of the poultry sector at Punjab government level, and assured to take up the issues related to Federal government through Ministry of Food Agriculture and Livestock.
The delegation also proposed that the NOC to new farms should be given keeping in view that the distance between two poultry farms should be at least from 1 kilometers to 3 kilometers, proposed farm shall have boundary wall, gate, bio security room at the gate and a mortality pit in the premises of the farm.
The delegation also proposed that the license fee should be charged at Rs 250 per farm per annum, Rs 2000 each from every feed mill and hatchery per annum. It also suggested that the development charges should be fixed at Rs 500 per acre and farmers should be exempted from building plan fee and malba fee.