[:en]BY OUR CORRESPONDENT
LAHORE: – Delegations from the Veterinary Pharmaceutical Association, farmers, pharmaceutical stakeholders, traders, Punjab Poultry Association, manufacturers, and importers visited the Lahore Chamber of Commerce and Industry and met with Vice President Adnan Khalid Butt.
The delegation included President Punjab Traders Association Tariq Javed, Chairman Punjab Traders Association Rana Qasim Iqbal, Co-conveners of Veterinary Pharmaceutical Association Nadeem Yousaf and Dr. Saleh Mahmood, Secretary Veterinary Pharmaceutical Dr. Majid Ijaz, former Chairman Rai Mansab Ali Kharal, President Tollinton Market Javed Iqbal, President Punjab Poultry Association Tariq Javed, Vice Presidents PPA Mian Aqeel and Chaudhry Shakeel, Chairman Rate Committee Mehar Irfan, Rana Qasim Iqbal, Mian Shehbaz, and others.
The representatives of the delegation informed the Vice President about the issues facing the veterinary pharmaceutical sector, stating that currently, more than 22,000 pharmaceutical companies are operating in the country. In the recent budget, the government has increased the General Sales Tax (GST) on feed from 10% to 14%, while a proposal has been made to increase the GST on veterinary medicine to 18%. The participants demanded the immediate withdrawal of the proposed increase, warning that if not addressed, the poultry rates would more than double, putting them out of reach for the public. They mentioned that in the past, feed and veterinary medicines were zero-rated for GST. They argued that this increase would escalate their production costs, causing Pakistani exporters to lose markets like Afghanistan to India and other countries.
They further explained that this would diminish the potential of Pakistani exporters and halt farm activities, leading to employment issues. They also highlighted that the 18% tax is imposed on every item related to poultry. They emphasized the critical role this industry plays in meeting the country’s nutritional needs, with millions of businesses and a significant economic cycle linked to this sector.
LCCI Vice President Adnan Khalid Butt, stated that the Chamber has strongly opposed many of the taxes imposed in the Federal Budget 2024, deeming them unfair and detrimental to the economy. He mentioned that the new budget proposes a 10% tax on poultry and dairy feed, and the implementation of an 18% GST would lead to an additional 50 rupees per liter for packaged milk. These taxes would further increase the prices of milk and meat, which are already beyond the reach of the public, contributing to inflation. If these new taxes are not withdrawn, it could cause irreparable damage to the poultry industry and a 70% reduction in the dairy sector.
It is estimated that the per capita protein intake in our country is only 44 grams per day, compared to around 140 grams per day in other developed countries. Imposing a new tax on poultry will worsen the situation. Similarly, 40% of children in Pakistan have stunted growth, 29% are underweight, and 18% are malnourished. Of the over 240 million Pakistanis, around 90% consume fresh, unsafe milk, while only 10% consume packaged milk. Considering these statistics, the government should revoke this decision.[:]
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