RGST to dam­age poul­try in­dus­try

The Pak Banker - - 2national - Staff Re­porter

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.

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