Pakistan import duties prompt parent stock fears
The Pakistan Poultry Association (PPA) is seeking exemption from regulatory duty on the import of grandparent chicks, according to proposals it has submitted to the Federal Board of Revenue.
Chicken production in the country very much depends on the very small number of grandparents that were being imported, PPA Chairman Khalid Saleem Malik informed the Inland Revenue.
10% extra duty on chicks under 185 g
In amendments introduced in November last year, tariffs were increased to raise additional revenue for the government and a 10% regulatory duty was levied on live poultry weighing less than 185 grams, which are essentially day-old grandparent chicks. Earlier, there was only 5% import duty, however, now in addition to the import duty, the poultry industry was also required to pay 10% regulatory duty.
3 genetic companies in the world
“There are only 3 genetic companies in the world, which produce these chicks and sell them at a very high price ranging from $25-30 per chick for the production of parent stock of females and males,” Malik argued.
“The additional 10% duty will only increase the cost of grandparent chicks, which produce the parent stock, which in turn produces day-old chicks. These subsequently produce broilers which are consumed by the consumers,” said Malik. He also expressed concern over the 30% regulatory duty on the import of corn, which would further increase the cost of production of poultry products.
Malik pointed out that the poultry sector, which had embarked on modernisation with the help of imported plant and machinery which were subjected to zero import duty and zero sales tax, was now subject to 5% import duty plus 10% sales tax and 1% additional duty. “This has increased the initial capital cost substantially.”
[Source: The Tribune]
