KARACHI: The imposition of punitive duties on ‘grandparents’ — the raw material of poultry sector — will hit the local poultry industry and consumers, Pakistan Poultry Association (PPA) said in a statement on Wednesday.
Questioning the logic behind the additional 10 per cent import duty levied on import of grandparents — live poultry multiplying seeds, PPA said that seeds of all kinds have been exempted from any additional taxes.
PPA said while additional import duty has been imposed on poultry seeds and raw material, chicken meat and its value added products are allowed to be imported duty-free from Malaysia, on preferred lower rate of import duty from China and at only 5pc duty from India which has placed imports from Pakistan on its sensitive list.
“It would have been prudent to levy a regulatory import duty on imports of finished poultry products rather than the seed and inputs. It appears that imports are being encouraged,” PPA said.
A levy of additional 10pc import duty has been placed on import of live poultry of the heading 01.05 (weighing less than 185 grams), which includes only grandparents. Grandparents are multiplying seed which reproduce ‘parents’ which subsequently reproduce broiler chicks.
Seeds of all kind have been exempted from any additional tax but grandparents, despite being seed, have been taxed, PPA bemoaned.
“The entire edifice of the poultry structure rests on the import of a handful of grandparents which do not provide any significant revenue to the government. The imposed duty would only increase the initial cost of grandparents’ farmers,” PPA said.
“Imported raw materials, which are used for production of value added chicken products, have been subjected to an additional import duty of 5pc. While raw materials have been generally exempted from additional tax but the wrath of the government has fallen upon the poultry sector,” PPA added.
“Yet another measure which would increase the cost is the levy of 30pc regulatory import duty on import of corn, almost 70pc of which is consumed by the poultry sector,” the statement added.
News source: Dawn