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Industry for Import Ban, Not Sales Tax

17 May 2011

PAKISTAN - The country's poultry association is urging the government not to impose a 15 per cent sales tax on feed.

The government should not impose 15 per cent sales tax on poultry feed, as it would increase price of chicken, a cheap source of finest protein, according to Pakistan Observer.

Giving budget proposals of poultry industry in Lahore yesterday (16 May), the former Poultry Association Chairman, Abdul Basit, said that government should make a difference between the duty on grandparent poultry stock and duty on its finished goods that has been implemented at the same rate at present.

Mr Basit suggested there should be a complete ban on import of any item, which is being produced or can be produced locally. Every item which is raw material for domestic industry should be free from all types of import duties, he said, adding, higher rate of taxes and duties should be imposed on the import of finished or semi-finished goods to encourage local production. He said that 100 per cent duty be imposed on the import of all kinds of chicken meat frozen or processed.

On sales tax, he said, there should be no RGST on any food item and their raw materials, pharmaceutical items and their raw materials and there should be no refund system of GST, and it should be only 1 per cent.

He continued that a major portion of Federal Board of Revenue (FBR) targets is being met through withholding tax (WHT) collections. The WHT agent is being hired and technical staff is being maintained for WHT deduction, deposit it into banks and for filing its tax returns. Furthermore, they have to maintain tax record separately and the WHT agents have to bear all expenses for this entire WHT collection/deposit exercise, being done on behalf of the FBR.

On revenue collection, Mr Basit said there should be no probe for investment made in industry, especially in corporate sector. This would give direction to the money, which is being wasted into non-productive channels and if it is invested in the productive industrial sector, it would create more jobs and more revenue for times to come.

Every business entity, engaged in any business or in any other economic activity, must be registered with any trade body or chamber, under Trade Organization Ordinance 2007, according to Pakistan Observer. So, automatically every business entity would have to have a national tax number and to file its tax return/statement regularly to renew its membership with trade body.

ThePoultrySite News Desk



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