Pakistan Poultry Association opposes poultry sales tax reforms

The Pakistan Poultry Association (PPA) has opposed the imposition of Reformed General Sales Tax (RGST) on poultry sector.

Former PPA Chairman, Raza Mehmood Khursand, said at a press conference that the government is contemplating to levy a 15% RGST on poultry feed and withdrawing zero rating on processed branded chicken.

He urged the government not to change the current GST taxation status of the entire poultry sector as the sector is making tremendous contributions in providing protein to fight malnutrition and under-nutrition in a nation.

He said, “Today the real price of chicken is 9.75% cheaper than it was in the year 1998-99 whereas, during the same period, mutton and beef prices have increased by 130% and 153% respectively”.

He also warned that if the reforms go ahead a large number of farms could close and then prices of chicken meat could, in the face of short supply, increase by 100%. He emphasised that this phenomena of short supply and high prices was demonstrated following the bird flu outbreak when the prices soared more than 150%. In such a case, chicken will be produced only for the upper class consumers, he said.