LAHORE: Perplexed at the government’s latest measure, the local meat industry said the country has always been producing Halal meat, adding that income tax exemption granted to Halal meat certification seems to be a redundant requirement.
In the budget for fiscal year 2016, the government has granted income tax exemption for producers of Halal meat who have obtained the required certification. It states that any industrial unit set up between July 1, 2015 and December 31, 2016 and engaged in certified Halal meat production will be exempted from income tax for a period of four years.
However, the industry feels that the certificate requirement is mind-boggling since meat produced in the country has always been Halal.
“Since all meat produced in the country is Halal, the objective of giving income tax exemption to Halal meat production is really mind boggling and beyond comprehension,” said a meat industry official.
The industry fears that this clause will only serve the interest of already established undertakings or those that are about to commence production. Entrepreneurs who decide to establish Halal meat production will not be able to avail the income tax exemption since their units might take longer than the short span of one year and six months - the period during which exemption is granted.
Published in The Express Tribune, June 27th, 2015.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.