Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    IShowSpeed Daniel La Belle race
    Videos

    IShowSpeed Beats Daniel La Belle in 40-Meter Race, Hits 41M Subscribers

    June 24, 2025 2 Min Read
    Cardi B new single Outside
    Videos

    Cardi B’s ‘Outside’ Single Sparks Buzz Over Offset and Stefon Diggs

    June 20, 2025 2 Min Read
    Squid Game Season 3
    Videos

    Squid Game Season 3: Final Trailer Unveils Epic Plot

    June 14, 2025 2 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: Poultry and meat consumers may be burdened
PhotoNews Pakistan PhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
PhotoNews Pakistan > Business > Poultry and meat consumers may be burdened
Business

Poultry and meat consumers may be burdened

Web Desk
By Web Desk Published May 20, 2016 5 Min Read
Share
SHARE

Islamabad: After making a plan to increase tax rates on packaged milk, the government is also considering levying sales tax on all types of meat sold in retail packing, animal feed and seeds used to produce cooking oil to generate Rs13 billion in additional taxes.

This will result in an increase in prices of chicken sold by brands like K&N’s, Menu and Climax Farms in addition to pushing up prices of cooking oil.

The proposals are part of the budget 2016-17 revenue measures that, subject to clearance of Prime Minister Nawaz Sharif, will be presented to the National Assembly for approval on June 3, said sources in the Federal Board of Revenue (FBR).

However, independent economists say any decision to increase sales tax on food items may stoke inflation, as the edible items carry 34.8% weight in the Consumer Price Index-based inflation.

The government treats packaged food as ‘luxury’ instead of an essential item.

Under a condition of the International Monetary Fund (IMF), Pakistan is in the process of withdrawing tax exemptions and concessions that it extended to affluent segments and on socially sensitive products. It has already implemented two phases of SRO withdrawals. The proposals to increase sales tax on food items are part of the third phase, which will be implemented from July this year.

The FBR has proposed to withdraw sales tax exemptions on fresh, frozen or preserved meat of bovine animals, sheep and goat, uncooked poultry, sausages, poultry feed, cattle feed, sunflower seed meal, rapeseed meal and canola seed meal.

It has also proposed to increase sales tax on soybean meal, oil cake and other solid residues and soya bean seeds, according to sources. These items fall in the category of socially sensitive products, which the government had initially vowed to protect from additional taxes.

The estimated revenues from these items is at least Rs13 billion as against few million rupees that the government is generating on their sales.

It is not for the first time that the government is going to tax socially sensitive and food items. In the last budget, the government had imposed 10% sales tax on yogurt, cheese, butter, cream, desi ghee, whey and cream. It now plans to increase the rate to the standard 17% from fiscal year 2016-17.

In addition to that, it is also contemplating dropping a second white bomb on milk consumers by slapping 10% sales tax on branded fresh milk and fat milk to raise Rs11 billion.

All these items had been exempted from sales tax under SRO 501 that interestingly the government had issued on June 12, 2013 after assuming the office.

In the next budget of 2014-15, it revoked the SRO and shifted these socially sensitive items to Schedule 5 of Sales Tax Act 1990.

Now it wants to impose 5% to 17% sales tax on these items.

According to the budget proposals, the FBR has proposed charging 10% sales tax on uncooked poultry, poultry meat or meat offal and on all types of sausages to raise Rs1.5 billion. The FBR has also proposed charging 10% sales tax on meat of bovine animals, sheep, fish and crustaceans to raise Rs350 million.

It has proposed to charge 5% sales tax on poultry feed, cattle feed, sunflower seed meal, rapeseed meal and canola seed meal to raise Rs3.5 billion. The FBR has proposed to charge 17% sales tax on soya bean seed against the current rate of 6% to generate additional revenue of Rs3.5 billion.

According to another proposal, the FBR seeks parliament’s nod to increase sales tax on soya bean meal from 10% to 17% for generating Rs2.5 billion.

Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

Trump Tariffs Rate Chart Trump tariffs China

Trump Signals No Tariff Pause Extension, Plans Letters with Trade Penalties

Pakistan China Regional Bloc

Pakistan and China Plan New Regional Bloc to Replace SAARC

Daniil Medvedev Wimbledon 2025

Daniil Medvedev Suffers Shock Wimbledon First-Round Exit to Benjamin Bonzi

Pakistan Stock Exchange

Pakistan Stock Exchange Hits Record High at 125,627 to Close Fiscal Year 2025

Meta AI 1 billion users

Facebook Requests Camera Roll Access for AI-Powered Story Suggestions in 2025

Post Archives

More Popular from Photonews

Imran Khan bail May 9
Punjab

Lahore High Court Denies Imran Khan Bail in Eight May 9 Cases

3 Min Read
Pakistan's Constitutional Amendments
Pakistan

How Many Reserved Seats Restored in Assemblies After Pakistan SC Ruling?

3 Min Read
Katy Perry Orlando Bloom split
Entertainment

Katy Perry and Orlando Bloom Split After Decade-Long Romance, Sources Say

3 Min Read
Sports

India Makes History as First Team to Lose a Test Match Despite Five Centuries

On June 24, 2025, India became the first cricket team to lose a Test match despite…

June 25, 2025
Entertainment

Tom Brady and Sydney Sweeney Spark Romance Rumors at Bezos’ Venice Wedding

On June 26, 2025, Tom Brady and Sydney Sweeney set social media ablaze after dancing together…

June 29, 2025
Sports

2025 NBA Draft Full List of First and 2nd Pick

The 2025 NBA Draft concluded on June 27, 2025, delivering two days of excitement at Brooklyn’s…

June 27, 2025
Business

PSX Soars 5.58% After Iran-Israel Ceasefire Boosts Investor Confidence

The Pakistan Stock Exchange (PSX) experienced a remarkable rally on June 24, 2025, with the KSE-100…

June 24, 2025
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

Categories

  • World
  • Pakistan
  • Punjab
  • Sindh
  • Khyber Pakhtunkhwa
  • Balochistan
  • Azad Jammu Kashmir

 

  • Top News
  • Business
  • Entertainment
  • Sports
  • Videos
  • Tech
  • Offbeat
  • Blog

© 2024 Phototnews
All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?