RGST a fear for industry
Reformed General Sales Tax, which is in these days has become a word of mouth of every businessman, traders and a number of protests have been recorded. Businessmen are feared that the implementation of RGST to hit hard the industry and consequently it would create unemployment and due to shortage of products price-hike would come into existence. Businessmen related to poultry business crying on the implementation of the cruel tax (RGST) and urged the government not to implement Reformed General Sales Tax and withdraw the bill immediately as it would cause undue damage to the industry, particularly to the poultry sector that is already facing various challenges. As poultry industry feed contributes 70pc 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. While justifying the imposing of the tax, the Financial Minister Sheikh Abdul Hafeez said that there would be not tax on poultry and common man would not be affected. When RGST implemented on poultry feed, ultimately it will affect meat and eggs. RGST on poultry feed will increase the cost of production of poultry farmer which he cannot recover from the. In 1996, Government imposed 15pc Sales Tax on poultry feed which resulted in closure of 40pc poultry farms pushing chicken meat and egg prices by 50pc. Due to decrease in the quantum of the poultry feed, price of Maize and other Agricultural byproducts were also decreased. On the other hand exporters have urged the government not to impose RGST on five zero rated sectors of industry. They said it is not an appropriate time to break the zero-rating regime for textile chain because the export-oriented industry is already standing on dying edge due to increase in the utility costs. Inspite of imposing new taxes government should take measures to stop leakages in the tax collection system.