RGST to damage poultry industry
LAHORE: Former Chairman of Pakistan Poultry Association and former LCCI Senior Vice President Abdul Basit has urged the government not to implement Reformed General Sales Tax (RGST) and withdraw the bill immediately as the RGST would cause undue damage to the industry, particularly to the poultry sector.
In a press statement issued here Thursday, Abdul Basit said that poultry industry feed contributes 70% in the cost of production of chicken meat and eggs. RGST on poultry feed means RGST on chicken meat and eggs which are essential food item for the common man. He said that RGST on poultry feed will increase the cost of production of poultry farmer which he cannot recover from the market because poultry rates are governed by pure demand and supply. He said that poultry farmers will go in loss resulting in closure of the poultry farms and then extreme shortage of chicken meat and eggs which will push the prices of chicken meat and eggs exorbitantly high. He said that in 1996, Government of Pakistan imposed 15% Sales Tax on poultry feed which resulted in closure of 40% poultry farms pushing chicken meat and egg prices by 50%. Due to decrease in the quantum of the poultry feed, price of Maize and other Agricultural byproducts were also decreased.
Abdul Basit said that to avoid the same repetition again and to save poultry farmers, agriculture farmers and common man from disaster, government should exempt poultry feed from RGST. He said that animal protein was the basic requirement of our country men but the country was running with 35% shortage in basic requirement of animal protein. He said that 40% of animal protein was fulfilled by chicken meat and eggs.