Poul­try breed­ers want VAT slashed

East African Business Week - - NEWS - BY SAMUEL NABWIISO

KAMPALA- UGANDA ----Poul­try breed­ers and feeds man­u­fac­tur­ers have ex­pressed their con­cern over the in­creas­ing taxes gov­ern­ment levies on the In­dus­try which they say in­creases the cost of poul­try farm­ing.

“Taxes levied on both breed­ing com­pa­nies and feeds man­u­fac­tur­ers are too high. This has pushed up the prices for feeds on the mar­ket yet feeds are es­sen­tials in the poul­try busi­ness. “The high cost of feeds has opened doors for fake feeds to cir­cu­late on the mar­ket which neg­a­tively af­fects the poul­try,” said Dr Brian Kyag­u­lanyi the Mar­ket­ing Man­ager of Biy­inzinka Poul­try In­ter­na­tional Limited (BPIL). The play­ers note that the high taxes has driven up the cost of both one day old chicks and An­i­mal feeds. This has ex­posed many farm­ers to poor qual­ity feeds and chicks on the mar­ket which has af­fected the sec­tors growth as com­pared to other East African Com­mu­nity coun­tries. BPIL is one of the lead­ing breed­ers of one day chicks and also man­u­fac­tur­ers of poul­try and Live­stock feeds. Kyag­u­lanyi urges that for the poul­try sec­tor to de­velop, gov­ern­ment should sub­si­dize the costs by re­duc­ing on the value added Tax (VAT) levied on the Feeds In­dus­tries so that the feeds are pro­duced at good qual­ity but also at a low cost. Apart from sub­si­diz­ing the costs of Poul­try feeds, sec­tor play­ers also want the Gov­ern­ment through its rel­e­vant Min­istries to come up with a pol­icy that can govern the hatch­ing of chicks. Ac­cord­ing to Kyag­u­lanyi, the ab­sence of such a pol­icy has com­pro­mised the qual­ity of the day-old­chicks supplied on the mar­ket by var­i­ous breed­ers. Poul­try farm­ing is one of the en­ter­prises which the Gov­ern­ment of Uganda, through the var­i­ous in­come gen­er­at­ing pro­grams such as oper­a­tion Wealth cre­ation, has sin­gled out as one of the en­ter­prises which the gov­ern­ment should pro­mote be­cause of its mul­ti­plies ef­fect in fight­ing poverty among the lo­cal peo­ple. The by-prod­ucts of the en­ter­prises have wider mar­ket both lo­cally, re­gion­ally and In­ter­na­tion­ally. The avail­able mar­ket es­pe­cially in the East African Com­mu­nity Coun­tries has en­ticed many Ugan­dans to en­gage poul­try how­ever ma­jor­ity of the farm­ers are of small scale due to the high costs of poul­try in­puts such as dis­ease’s man­age­ment, high cost of poul­try feeds and high costs for one day old chicks. This has af­fected the po­ten­tial of Ugan­dan farm­ers to out com­pete their coun­ter­parts in the var­i­ous EAC Coun­tries due to limited pro­duc­tion of poul­try prod­ucts. Some of the poul­try farm­ers talked to East African Busi­ness Week said apart from the high cost of the farm­ing in­puts, many poul­try farm­ers still lack skills in bird rear­ing.

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