Poultry sector demands tax removal on feed contents

Says it will reduce cost, make the sector more competitive

ISLAMABAD: The national and international compliance standards of chicken products are giving a tough time to Pakistan in the standard-conscious world, stated the Poultry Association of Pakistan.

A delegation of the association, in a meeting with Adviser to Prime Minister on Commerce, Textile and Industry Abdul Razak Dawood, discussed the performance of the poultry sector, its potential and how it could be made more efficient and competitive. Locally-produced feed contents should be free from sales tax, the association suggested. It will reduce feed cost, turning the sector more competitive. They highlighted the need for chicken vaccines, important for the sector’s growth, to be allowed at zero import duty.

Appreciating the performance of the poultry sector, the adviser emphasised that poultry producers should be more aggressive while making inroads into the regional market. “Pakistan needs to capitalise on the global Halal market,” he said. He assured the association that their proposals, related to tariff, taxation and facilitation, would be analysed and considered for implementation in order to help the sector grow.

“Major food players like Cargill are enhancing their presence in the Pakistani market and our poultry players need to capitalise on it,” Dawood said.

Cargill, the global agro-giant, has pledged to invest more than $200 million in Pakistan over the next three to five years. Commercial poultry in Pakistan, which was established in 1962, is one of the largest agro-based segments having an investment of more than Rs750 billion.

There are over 15,000 poultry farms spread in rural areas across the country. The capacity of farms ranges from 5,000 to 500,000 broilers.

Annually, Pakistan produces around 18,000 million eggs and over 2,250 million kilogrammes of chicken meat. It shows that there is a huge potential for the poultry sector to cater to domestic and export sectors. 

Published in The Express Tribune, May 26^th, 2019.

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