Pakistan Poultry Association (PPA) North Zone has expressed grave concern over imposition of 3.5 percent withholding tax on trading of agricultural produce and said it would result in increase in the prices of poultry feed and chicken meat.
Agricultural produce constitutes 60 to 65 percent of the poultry feed and imposition of withholding tax would result in increase of Rs 35 in the poultry feed bag and an addition of around Rs 7-8 per kilogram in the chicken meat prices, said PPA Chairman, Abdul Hayee Mehta while talking to Business Recorder here on Wednesday.
Mehta said that feed mills purchase required agricultural produce from grain markets. He said maize, broken rice, rice polish and other things constitute 60-65 percent of the poultry feed. He said there was no practice of purchasing agricultural produce directly from farmers in the poultry industry and millers have to go to commission agents. He said millers have to deduct this tax, as the commission agents do not pay taxes, it would add to the cost of the produce of these feed mills.
'At present on average one poultry feed bag is costing Rs 1,740 per 50 kilogram bags and imposition of this withholding tax would add Rs 35 to this price. Ultimately, it would add from Rs 7-8 per kilogram in the chicken meat price, which is the cheapest source of protein for the common man at present,' Mehta added. Mehta urged the government to immediately withdraw this decision to facilitate this important industry, farmers and the consumers. He said that poultry feed industry was producing around 5.5 million tons of feed every year and imposition of this tax would make a big impact on the industry.
He said presently industry was buying wheat from the government for utilisation in production of feed so there was no immediate impact. However, there would be an impact on the chicken meat prices as soon as feed mills would go the markets for buying maize and other commodities, Mehta feared.
He said that the poultry industry would launch a move against this taxation and also seek co-operation of all the stakeholders to press the government for its withdrawal. 'We will adopt every course of action including strike to press the government for immediate withdrawal of this decision,' Mehta concluded.