KARACHI: Khalil Sattar, Patron-in-Chief, Pakistan Poultry Association, had proposed a comprehensive strategy to reduce and impede malnutrition, stunting and under-nourishment and wasting in adolescents in line with the Prime Minister's aim.
According to the World Food Program, almost 43 per cent of Pakistan's population is vulnerable to food insecurity, and the leading cause of malnutrition is a dearth of protein consumption.
Khalil Sattar stated, "In order to fill in the protein gap and to provide additional poultry products, there is a definite need to enhance the sector of poultry. The production of poultry must be swiftly augmented at low input cost,".
However, he also acknowledged that the proposed budget contradicts his plan.
The poultry trade increased at an annual rate of 8 to 10 per cent for the past few years, contributing significantly to GDP; nevertheless, the planned tariffs on poultry products would undermine all of the industry's efforts to assist the PM's aim of combating malnutrition.
Ironically, the actions adopted to strengthen revenue collection would result in inimical growth in an otherwise steadily rising poultry business, resulting in lower revenue generation.
Before the proposed mini-budget, a grandparent day old chick, which costs USD fifty-four C&F, had a tax impact of Rs 486 due to 3 per cent customs duty and 2 per cent additional custom duty.
"In the proposed budget, the proposed levy of 17 per cent sales tax would cost an additional Rs 1735, and the total tax consequence of sales tax and customs duties would be Rs 2,221 per grandparent chick. It is accentuated that without grandparents, no poultry production can take place. The increase in levy will undoubtedly lift the cost of day-old parent stock chicks as well," asserted Khalil Sattar.
"In the proposed budget, the sales tax exemption on vaccines has also been revoked. The average expense of medicines and vaccines in grandparent and parent stock production is approximately Rs 475, and a 17 per cent sales tax would lift the cost of vaccines and medicines by Rs 80-90. This would also add to inflation," expressed Khalil Sattar.
As a result, he added, imposing a 17 per cent sales tax on incubators would stymie the poultry industry's expansion plans because taxing poultry feed, vaccines, and poultry machinery is no different than taxing all forms of poultry agribusiness, such as Grandparent, Parent Stock, Broiler Farming, and final poultry product, which ultimately resulted in inflationary pressures.
Khalil Sattar also claimed that "It is proposed in the budget that processed chicken meat, packed and branded be subject to 17 per cent sales tax. This would only further benefit the unorganized sector at the cost of the organized and documented sector."
Khalil Sattar enlightened that the planned sales tax levy increase and imposition is unsustainable. The snowball effect of hiking the sales tax on Grandparents, poultry feed components, poultry vaccines, poultry and feed milling machinery and equipment, and processed, packed, and branded chicken meat would result in a shortage, causing prices to skyrocket.